In this episode, Lane has been mysteriously unavailable whenever Rory tries to catch up with her to share her news, such as her stellar PSAT results, or their termite disaster. While talking to Dean at Stars Hollow High School, Rory suddenly notices that Lane is one of the cheerleaders who are staying late for practice. Aghast by this discovery, Rory heads off for coffee with Dean.
When Rory sees Lane at the school on her way home, they have a confrontation. Rory is upset that Lane hid her cheerleader tendencies from her, while Lane says she couldn’t tell her the truth because she feared being mocked or Rory getting upset. Rory is actually quite rude to Lane, insulting her cheerleader outfit and reminding her that they always made fun of cheerleaders like Janie Fertman.
Lane points out that Rory isn’t around much any more, always being busy with Chilton stuff or Dean, that she wanted to try something new, and doesn’t have to justify her choices. This is all perfectly reasonable, and it’s great to see Lane get to do something for herself for a change. Rory is in a bad mood because of the fight with Lorelai, and gets in a temper with her, and it ends with both girls raising their voices at each other.
(In an episode about secrets, this is the third secret: Rory keeping her PSAT results a secret from Paris, Lorelai keeping her termite problem a secret from Emily, and Lane keeping her cheerleader secret from Rory).