The N-Dubz singer was reprimanded by show bosses after using the word "bent" to mean gay.
In a conversation with fellow housemate Jasmine Waltz, she asked if he had ever performed an oral sex act on himself, to which he replied: "Do I look bent?"
He was later called to the Diary Room where Big Brother told him he had broken the rules regarding unacceptable language.
"He was reprimanded for his remarks and producers will be keeping an eye for repeats," a Channel 5 spokesperson said.
Dappy's comments came just days after Evander Holyfield caused controversy by claiming that being gay "ain't normal", adding that it was "a choice" which "could be fixed".