The word Dyke was originally a slur, but nowadays it is used as a
derogatory term to refer to women who are attracted to women, also known as Lesbians or Sapphists. Though a few women who identify under this
sexual preference find this term alright, most of them will find this term highly
offensive. The word Dyke is more often then not used in cruel way.
The word Dyke does NOT refer to transsexual men. They are MEN, not WOMEN.
Rude: "Did you hear that she kissed some girl? Ew, what a
freaking dyke!"
Neutral: "She likes girls, so I guess that makes her a dyke, right? Okay, cool."
Note:
The term dyke is hardly used in a "good" or "nice" way.