Hi there, queer historical professional speaking! The example that I’m going to give doesn’t relate to Ancient Egypt, but hopefully it can serve to illustrate the point we’re trying to make.
Love stories documents the development of the concept of homosexuality through legal documents, newspapers, and the writings of Walt Whitman beginning in the 1840s and continuing through the rest of the 19th century. It is an excellent book with solid historical evidence, and I would highly recommend checking it out.
The full title of the book is Love Stories: Sex between Men before Homosexuality, and this is important, because at this point, the concept of men who only have sex with men does not exist. While there are certainly men who only really want to have sex with other men, most “sodomites” of the 1840s also engage in sex with women. Importantly, sodomy is seen as so dangerous because any man can be tempted into having sex with other men.
Gay, bisexual, and even queer are all terms that were developed after the advent of homosexuality, and as such they cannot apply to people living and loving during a time when that concept did not exist.
Would the sodomites of the 1840s feel represented by the word gay, or even bisexual? We can’t know because we can’t ask them, and to apply those labels to them in retrospect erases the nuances of their identities formed in an entirely different cultural era. Let’s take another example:
Abraham Lincoln had what was, by all accounts, a romantic relationship with another man. It is the focus of one of the first chapters in Love Stories. However, at the time that this relationship is taking place, the concepts of sex and romance are not culturally linked. One can feel romantic love for another person without wanting to have sex with them. This is the kind of relationship that Lincoln—and many other men—had. The label gay or bisexual doesn’t apply because both terms apply to the concept of having a romantic and sexual relationship with the same person*. Lincoln might even object to the MLM label because even that assumes sexual attraction.
The book also investigates men who dressed as women for the purposes of engaging in sexual encounters with other men. In this case study, the outrage generated by the discovery of this practice had less to do with the sex of the individual than it did with their race. Again, this is because during this time and culture, any man can be tempted to have sex with other men, just as he can be tempted to have sex with women.
Would this historical person who dressed in women’s clothing feel represented by the word trans/transgender/trans woman? Was her gender identity as tied up with their appearance and presentation as ours is today? How did they feel about dressing and living as a man for some of the time? We can’t know because we can’t ask, and we cannot presume that our own notions of sex and gender apply to all people across all time.
*There are, of course, people who do not fit into this most common definition, but modern people who love differently than what is encompassed in the widely accepted definitions of sexual orientations might also feel similarly misrepresented by these labels. It’s an individual thing, and we can’t know historical people about the way a label applies to them like we can with living people.
TL;DR modern concepts like gay, trans, or queer can only be applied to people living in the culture in which those words were developed. To superimpose our current cultural understanding onto people of the past is to erase the many nuances those people would have experienced during their lifetimes.