Green’s Dictionary of Slang

off-colour adj.

[SE off-colour, unwell]

(US Und.) homosexual.

[US]G. Legman ‘Lang. of Homosexuality’ Appendix VII in Henry Sex Variants.
[US]Lait & Mortimer USA Confidential 51: Its off-color graduates include that star, Alger Hiss.
[US]Guild Dict. Homosexual Terms 33: off-color (adj.): Homosexual. (Criminal slang.).
[US]B. Rodgers Queens’ Vernacular.