If this teacher does it to one person, odds are they are doing to others. What if his actions drove somebody over the edge and they committed suicide? In this day and age, administrators are held more accountable, so in my opinion you go up the chain starting with the teacher. If the teacher does not understand their actions could put you in jeopardy then you continue up to principle and then school board.  If all else fails, pressure from outside sources be it GLBT supporting groups or news media, they would be crazy to let it go that far.  The teacher is affecting you and the learning environment. They are not inviting a positive atmosphere at all.

Are you Kidding me? In the U.S.? That's not OK, not one bit, that teacher is disturbed and needs to be removed from the classroom. Contact the Transgender Law Center   http://transgenderlawcenter.org/cms/, and also the Nat'l Center for Transgender Equality: http://transequality.org/ 

Nip this nutcase abuser in the bud. He's breaking the law.