Country music legend Dolly Parton is known for putting everything out on the table.

She's always been honest and forthright about her life, and that trend continues with the release of her new memoir, "Dream More," which was published Tuesday.

Parton, 66, gave an exclusive interview to "Nightline" this week to promote the book. During the chat, she talked about something that bonds her to close friend Oprah Winfrey — constant rumors about her sexuality.

Just as Winfrey has been dogged by speculation that she and best friend Gayle King are in a relationship, Parton has experienced similar talk about herself and her best friend Judy.

"[Oprah and I] do talk about that," Parton said. "Gayle [King], her friend, Judy, my friend. They just think that you just can't be that close to somebody. Judy and I have been best friends since we were like in third and fourth grade. I mean, I love her as much as I love anybody in the whole world but we're not romantically involved."

After confirming that she is definitely heterosexual, Parton opened up about her support for the LGBT community. She even hosted an event called "Gay Day" at her Tennessee theme park Dollywood, an event that Parton said caught the attention of hateful, militant groups like the Ku Klux Klan.

"When it first started there were people giving us threats, I still get threats," she said. "But like I said, I'm in business. I just don't feel like I have to explain myself. I love everybody."

Not only does she love the gay community, but she once embraced them so much that they thought she was one of them. Parton discussed the time she entered into a drag queen look-a-like contest and got the least fanfare of all the contestants.

"They had a bunch of Chers and Dollys that year, so I just over-exaggerated — made my beauty mark bigger, the eyes bigger, the hair bigger, everything," Parton said. "All these beautiful drag queens had worked for weeks and months getting their clothes. So I just got in the line and I just walked across, and they just thought I was some little short gay guy ... but I got the least applause."