Totally fine with it. My boy is very much a boy. However dd and I play dress ups, paint nails etc. so he loves joining in. Right now he is wearing shinny purple.
I think it's important for children to explore things regardless of gender.
I read somewhere that if children explore while young their less likely to feel confused or have issues through puberty.
I would love and respect either of my children regardless of if they are gay or straight so people worrying about that issue doesn't apply to us either. Which unfortunately alot of people feel when you allow your child to explore.