Great, Genderqueer Elves

Sex
You can play a male or female character without gaining any special benefits or hindrances. Think about how your character does or does not conform to the broader culture’s expectations of sex, gender, and sexual behavior. . . .

You don’t need to be confined to binary notions of sex and gender. The elf god Corellon Larethian is often seen as androgynous or hermaphroditic, for example, and some elves in the multiverse are made in Corellon's image. You could also play a female character who presents herself as a man, a man who feels trapped in a female body, or a bearded female dwarf who hates being a mistaken for a male. Likewise, your character’s sexual orientation is for you to decide.

Fifth Edition D&D Player’s Handbook, page 121.

This is one of the sillier passages ever written in a role-playing game. In fairness, the bit about Corellon arguably has a basis in the history of the game; AD&D's Deities & Demigods stated that Corellon "is alternately male or female, both or neither." Otherwise, only the first sentence of the material on sex concerns mechanics; the rest is just politics or virtue-signaling.

Does anyone really need this guidance? In the almost 35 years I have been playing D&D, these issues have never arisen at the table. And if players or the referee were inclined to raise these issues, they would not need this guidance, which only states the obvious. My character’s sexual orientation is up to me? Thanks for clarifying that Wizards of the Coast.