"You all right with it? For yourself, I mean. Not all right with what other people're going to think, because they're not going to think anything good, but are you okay with what you think?"

In her own blunt way, she's basically asking him if he accepts himself for who he is. There're probably more delicate ways to put it, including not mentioning that everyone's going to have a big problem with him if they find out, but she's not sure how else to put it.