Cross dressing is a behavior commonly observed in young children who are exploring their gender identities. It's only as children grow older that society may perceive cross dressing as unconventional. Nevertheless, by explaining to your child what cross dressing is, you can help them understand how cross dressing is just another form of gender expression and something that they should not be ashamed of.
Steps to Approach the Topic
Introducing the Concept

Understanding Cross Dressing

Explaining the Distinction between Sex and Gender

Introducing Cultural Norms to Your Child

Clarifying Transgender Identity

Addressing Your Child's Inquiries Simply

Providing Age-Appropriate Insights

Encourage Curiosity About Sex and Gender

Talk About Cross Dressing During Clothes Shopping
Understanding Your Child's Actions

Recognize the Normalcy of Children's Experimentation

Be Honest with Yourself

Let Your Child Define Themselves

Avoid Punishing Your Child

Ask Questions to Understand Your Child
Discussing Your Cross-dressing with Your Child

Foster Open Communication with Your Child

Provide Context for Your Behavior

Express Empathy to Aid Understanding

Avoid Surprising Discoveries
Useful Tips
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Stay resilient and patient. Initially, your children might not grasp everything, but they are capable of understanding complex situations.