in a nutshell, the idea is that differentiation of fetal genitals and the differentiation of fetal brain sexual characteristics happen at slightly different times and are subject to hormonal influence, among other variables, and are not always synchronized. So a change in uterine environment hormones in the gap between the two developmental phases is a possible, even likely, contributor to future sexual orientation.
Makes one wonder about the levels of hormone pollution in our water supplies... hormones are the worst of all pollution because our bodies respond to extremely small amounts of some of them in the course of our daily living, so having an unwitting external source at extremely dilute concentrations is particularly dangerous. Having things such as trace amounts of birth control artificial hormones slip into our water supplies may have some consequences we don't fully know about yet.