Accoring to Wikipedia:
Zell's sexuality becomes a running joke within the game, a factor often missed by players of the Americanized game because of cultural differences with Japan (see also homosexuality in Japan). Other characters drop hints indicating they believe Zell might be homosexual. Quistis (if chosen for a particular mission) makes comments on the unexpected neatness of his room. Squall often gets alarmed around Zell because he tends to get "touchy-feely" around him — in one scene, he actually whacks him on the head with his gunblade after Zell hugs him. A girl working in the Balamb Garden library has a crush on him, but he is clueless to her feelings, even though she is rather obvious about it — other librarians go so far as to organize a "committee" to get him interested in girls. The player even has the opportunity to add implications about his sexuality by claiming that his favorite color is pink. These questions are not resolved unless the player takes part in a side quest, which involves them spying on Zell as he meets with the girl who has a crush on him. At the end of the game, he is seen eating with the girl, but not paying much attention to her.
Not surprisingly, because of in-game jokes on his sexuality, Zell often appears in yaoi fanfiction. He is usually paired with Squall in this fashion as both lovers and best friends.
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Originally Posted by corncracker
