Luke flips his lid that Damian is there and has been following him. He understandably snarks at Bad Dad, who assures Luke that all the Grimaldi nonsense that forced him into hiding is over and that he's back to be a part of Luke's life. Luke is unimpressed and accuses Lily of bringing Damian back to try and "fix" him. Damian wonders WTF is going on and Lily finally spits out that Luke "thinks that he's gay." Lily, Lily, Lily. He IS gay, Bad Mom.
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http://youtu.be/m1GXvTpy06k Damian is shocked and wonders what went wrong, insisting that his son cannot be gay. He wonders if perhaps Lily and Holden's parenting is to blame, because without Damian's manly influence Luke was too much of a momma's boy. It's basically stereotypes on parade here as Damian tries to think of a reason Luke would turn gay. Lily admits that her marriage to Holden hasn't been "problem free" (UNDERSTATEMENT OF THE CENTURY), and Damian thinks this confusion is to blame. Damian wants to help, and Lily says she'll talk to Holden about it.
Luke reappears after Damian leaves, and reiterates to Lily that he doesn't THINK he's gay, he KNOWS he's gay. "If you can't deal with it, then leave me alone." High five, Luke!
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http://youtu.be/xonFn4C-qI8