The Prodigal

Gabrielle decides to leave Xena for a little while, and Xena's expression as Gabrielle walks away is very emotional (for Xena.) Also, Gabrielle's constant talk of Xena gets this reaction from her sister: "Well if Xena's so perfect, I'm surprised you can stand to be around simple people like us, your family!" Lilla says to Gabrielle :"It doesn't take an oracle to realize that you belong out there, in the world with Xena, helping to change people's lives for the better, like you did here." "You knew all along, didn't you?" asks Gabrielle. "Yup," responds Lilla. "You're my sister and I love you more than everything." (Ignacio points out that this conversation makes the most sense if what Lilla knew was that Gabrielle is a lesbian.)
From Ignacio: "Just at the end of the episode when all is done, Gabrielle shares an interesting talk with her sister Lila when she starts with "One dinar for your thoughts". After a Lila's long talk about Gabrielle's destiny with Xena, Gabrielle looks impressed and asks: "You always knew, true?". And if that wasn't enough (what did she know about Xena and Gabrielle but didn't tell?), Lila answers, almost crying from emotion: "Yes... you're my sister, and I love you more than anyone else". Seems like Lila is finally accepting, after trying to refuse it, that her sister is gay. She may not like it (Lila has been explicitly angry with Gabrielle through all the episode for going away with Xena), but she's her sister and that's the way she is. Anyway, even if you don't accept this interpretation, this scene is very emotional, and seems like there's something very meaningful but a bit embarrasing they both know but don't tell. If the point they don't touch is that Gabrielle is gay, the whole conversation gets all its sense, otherwise seems incomplete and a little absurd (why all that emotions and tears?)."