In Fable II and III, the player can choose a male or female avatar. Regardless of their choice, they can wear any of the clothes available in the game. The clothing is still gendered, however, as demonstrated on the lists of Fable II and Fable III clothing. Moreover, each piece of clothing can raise “cross-dressing” or “transvestism stats” depending on the gender of the player-character, as shown in the charts on this page. NPC responses to a player-character’s crossdressing, however, can vary, as discussed here.

LGBTQ  references in this game series:

All games: Sex Workers; Relationship Options

Fable II (2008): Potion of Transmogrification

Fable II and Fable III (2010): Reaver; LGB NPCs; Cross-Dressing

Citations:

1. Fable II Clothing. (n.d.). Retrieved from http://fable.wikia.com/wiki/Fable_II_Clothing
2. Fable III Clothing. (n.d.). Retrieved from http://fable.wikia.com/wiki/Fable_III_Clothing
3. Shaw, A. (2013, October 16). The lost queer potential of Fable. Culture Digitally. http://culturedigitally.org/2013/10/the-lost-queer-potential-of-fable