In short, Frasier (the show, italicized) was pretty gay, even if Frasier (the character, non-italicized) was always 100% hetero.
Over its 11 seasons, Frasier touched on gay topics a few times. First, there's the Season 2 episode 'The Matchmaker', in which Frasier (Kelsey Grammer) is romanced by his gay station manager (the hunky Eric Lutes), and lastly, there 's the Season 1 episode 'The Doctor Is Out,' in which Frasier is publicly (and incorrectly) outed as gay.
However, it's the fourth-season episode 'The Impossible Dream' that might be the most interesting to talk about in terms of the overall vibe of the show. In it, Frasier has a recurring sexual dream about his coworker, Gil Chesterton (the openly gay Edward Hibbert). Sitcom hilarity ensues, but so does more introspection than we see from most TV characters.
Full Story at Unicorn Booty- Gayest Episode Ever: When 'Frasier' Finally Acknowledged Its Subtext Written by Drew Mackie June 10, 2017