Green’s Dictionary of Slang

homosexual; latterly transsexual.

c.1870		‘Funny He-She Ladies!’ in C. Hindley Curiosities of Street Lit. (1871) 157: And such a stock of togs was there, / To suit these he-she ladies.
1966		B. Jackson Get Your Ass in the Water (1974) 160: She’s a he-she woman with a sheepskin pussy, / lined it with feathers and covered with fat.
2021		J. Ellroy Widespread Panic 8: He pimped transvestite whores out of a he-she bar.
2022		J. Hannaham Didn’t Nobody Give a Shit 17: T hey got no kick from paroling what some of these jerk-offs called ‘he-she things’.