Baby Reindeer portrays LGBTQ+ characters with complexity and dignity. The trans character, Teri, is depicted as a strong, loving individual, while the protagonist Donny explores his own sexual fluidity. Although a gay character is an abuser, the narrative focuses on individual depravity and trauma rather than linking villainy to identity, ultimately affirming the worth and complexity of queer lives amidst challenging circumstances.

Baby Reindeer features Teri, a trans woman, as a central character and love interest, depicted with dignity, intelligence, and emotional maturity. Her trans identity is acknowledged but not sensationalized, contributing to a complex character arc. The narrative affirms her worth and agency, as she ultimately prioritizes her well-being, framing obstacles as external to her identity. This results in a primarily positive portrayal.