With no personal experience of dwarves as yet, Tyler does need it explaining to him. His expression betrays his fascination and he's clearly got an interest in what Illumination is explaining.

"Where I'm from gender is assigned, when you're born, by a doctor according to your genitals." Clearly he thinks this isn't exactly the ideal situation from his expression alone, but honestly that's a whole other conversation.

One that he probably needs some more calories for.

"This place seems a lot more uhm... liberal? Than what I'm used to."