NOT a good idea, this fad of Dads dressing up in womanly clothes. Many children 'try out' the dress of the opposite sex. It's common, and, for those not encouraged by Feminist Nazi Parents to do it on a regular basis, it's short-lived. Generally, by the end of pre-school, a kid's sexual identity is confirmed as the same as his/her biological, DNA-matching sex.
What kid doesn't love rubbing the satin edging of his favorite blanket? Or stroking a silky blouse? So, a kid's attraction to soft, touchable fabrics is at least PART of the attraction to his sister's dress-up clothing.
Not a deep-seated, innate desire to be a female.
But, no. Just, no, to the idea of "Precious Dad" in female regalia - even if it's Pretend Fairy Queen. That just leads to prolonging the time of gender confusion.