@Elliptic,
I think you're in two very different places in your lives (in the interests of full disclosure, I am not gay). Coming out is, as you know, a very, very big deal. I can see why he wouldn't want to be even accidentally outed, particularly on Facebook as it feels impersonal.
As for his relationship with his grandmother, that is not for you to judge. He loves her and wants her to be comfortable. Maybe he's too chicken to come out to her, but that's his choice and it's not yours, particularly not when it's done with a Facebook tag.
Navigating relationships is difficult under the best of circumstances. This is obviously important to him (his earlier statement about not noticing? He noticed. He was either trying to figure out how to word the issues he's got with it or he came to a realization that he's not ready for such a public declaration of his sexuality).
You need to decide whether it's more important to you to be open, or to be with him.