Native American peoples include diverse and complex populations across the continent; this answer speaks to Indigenous peoples in Canada.

Indigenous cultures in Canada have their own attitudes and approaches to homosexuality. Generally speaking, however, Indigenous peoples in Canada tend to use the term “two-spirit” to refer to people who don’t necessarily see themselves as strictly male or female, but have qualities traditionally thought to belong to both. The term was first used in 1990, when activist Albert McLeod developed it as a way to broadly reference LGBTQ+ Indigenous peoples.

Indigenous peoples have their own terms for two-spirit. In Ojibwe, it’s niizh manidoowag, meaning of feminine and masculine spirit. In Cree, the term napêw iskwêwisêhot references men who dress like women, and the term iskwêw ka napêwayat means women who dress like men. A well-known historical figure who identified as two-spirit was We’wha of New Mexico. She was described as lhaman or “mixed gender” in the Zuni language.

Europeans who encountered two-spirit people in Canada during the age of contact believed them to be homosexual. While this may have been true in some cases (and while this might still describe some two-spirit people today), historically, two-spirit people did not so easily identify as either homosexual or heterosexual. As noted, many Indigenous languages have terms for third and fourth genders. In addition to gender identity, two-spirit can also describes one’s sexuality and spiritual identity.

Modern-day two-spirit people can use this identity to reclaim traditions lost through colonization. Various two-spirit organizations in Canada and the US seek to educate the general public about two-spirit traditions, as well as serve as sources of support for Indigenous LGTBQ+ individuals.

For a contemporary history of Two-Spirit peoples in Canada read: https://thecanadianencyclopedia.ca/en/article/two-spirit/

Qwo-Li Driskill, Daniel Justice, Deborah Miranda, and Lisa Tatonetti, eds. Sovereign Erotics: A Collection of Two-Spirit Literature (2011).

Sabine Lang, Men as Women, Women as Men: Changing Gender in Native American Cultures (1998).

Will Roscoe, Changing Ones: Third and Fourth Genders in Native North America (1998).

/u/400-rabbits wrote a great response about homosexuality among the Nahua.

You should check out /u/400-rabbit's fascinating answer to How was homosexuality generally viewed by native Americans, pre-colonization until American revolution?

I'd also recommend posting this in r/askanthropologists