1) When you wanna get things straightened out but the situation calls for flamboyance or sensitivity of a homosexual nature.

2) The act of clearing up sexual orientation misunderstandings by way of your preferred coming out method.
1) Steve: "Man, I think Brad is pissed at me for screwing Stephanie at that frat party."

Jude: "That sucks, brah."

Steve: "Yeah, man, but don't worry. We'll homo it out."

2) Julie: "Hey, Jake, so I heard Emma is totally into you."

Jake: "Oh boy, I guess I'll take Spencer along next time, just to homo things out."
by nyaningthroughspace May 12, 2013

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