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Gender dysphoria (sometimes but not preferably gender identity disorder) is felt by individuals who experience significant discontent from their gender assigned at birth. It is also a formal psychological and psychiatric diagnosis. Not all authorities classify this as a mental illness; the National Health Service in the United Kingdom describes it as "a condition for which medical treatment is appropriate in some cases."
There are a number of good reasons why gender dysphoria should not be considered a disorder. Recent research has indicated that transgender people tend to have the same or similar brain structures as their identified gender, even before hormone replacement. Possible causes of gender dysphoria include genetic reasons and prenatal exposure to particular hormones, among others.
As a minor concession to the trans community, in response to complaints that "gender identity disorder" was a stigmatizing term, the American Psychiatric Association will change the "Gender Identity Disorder" diagnostic category in the DSM-V to "Gender Dysphoria" in 2013. The APA, as well as the larger Western healthcare structures, remains highly conservative on the issue, to the point that there are thriving black and grey markets for prescription hormones and some cosmetic treatments. Some clinics have sought to move past this issue by offering "informed consent" prescriptions, for which a psychiatric diagnosis is not required.