I'm Gay (I'm Happy) received positive reviews; fans commented on the album's wide variety of positive messages and also the unique beats and lyrical styles not common to mainstream hip-hop. Lil B rapped about many controversial issues in the album including race relations, poverty, humanity and the justice system. The album, according to many fans, shows the "true" side of Lil B, many noting the album's inspirational theme. I'm Gay received generally positive reviews from music critics. At Metacritic, which assigns a weighted mean rating out of 100 to reviews from mainstream critics, the album received an average score of 73, based on 10 reviews. Lil B was the subject of controversy because upon the album's release he decided to provide a free version via a download link on Facebook. Many believed this to be a publicity stunt; however, he cleared the controversy when on his Facebook page he posted: "for all my fans who don't have 10 dollars to buy my album, here it is for free."
Lil B was criticized for deciding to name his album I'm Gay, even receiving death threats at one point. Many saw the move as a publicity stunt; however, the rapper has said that the title is meant to be used as the formal definition of 'gay' (merry) and that his references to being gay were not meant to be taken literally. He states it simply means "I'm Happy". After all the controversy and receiving death threats, he added "I'm Happy" in parentheses to the title.