Latent homosexuality is the unconscious or unexpressed erotic attraction toward an individual of the same sex. This term was first proposed by Sigmund Freud (hyperlink). Someone with this inclination may have a hidden potential or a suppressed interest to engage in a homosexual relationship.
For instance, Joe, a married man, meets Peter, a homosexual, in a gym. They often chat while changing in the locker room. After several weeks, Joe began to look forward to gym night because of Peter. He was oblivious to the fact that he was already flirting with him and Peter was reading those signals. Peter was about to ask Joe out when he suddenly mentioned his wife and kids. Peter was so shocked because he thought Joe was hitting on him.