(Steve could be really cruel if he wanted too. He could easily expose Jonathan's true secret and make the younger boy's life a complete hell. Like anyone would actually believe the freak over Steve Harrington. Given Steve's reputation with the ladies everyone would assume Jonathan was extremely creepy as much as they would him being a pervert. Steve can practically hear the nasty homosexual slurs being screamed in the hallways of Hawkins High. 

Jonathan deserves it right? 

Let it be known in this very moment Steve isn't concerned about himself but more about Jonathan's safety. Most people in Hawkins don't shy away from their opinion about a man being attracted to another man. Homophobia runs deep in the small town and nearly everyone has been taught its wrong, sinful and dirty. Jonathan wears the label of being weird, a freak. He doesn't need the word gay attached to his name. Not with the horror he's dealing with involving his brother. 

The disappearance of Barb. It's too much for one person to carry along their shoulders.)

Best you better keep it that way and just let everyone think you're into Nancy. Nobody can hurt you then if they don't know.