She duped her friend over the course of two years, "having sex" with her 10 times after pretending online to be a man called Kye Fortune.
Newland would also put on a different voice, and wear a bizarre costume involving bandagas across her chest, a swimsuit and a woolly hat so the victim would not get suspicious.
But one day, her victim tore off the blindfold during a sex session and saw, to her horror, Newland wearing a prosthetic penis.
The victim has told the court she would "sooner have been raped by a man" than experienced her ordeal.
A judge today warned her that jail is "inevitable".
Newland claimed that she did not wear the strange costume, and that her victim knew what was happening all along, as both women were engaging in role play while "struggling with their sexuality".
The victim would be forced to wear a blindfold, even when watching TV or sunbathing.
Fortune was created when Newland was 13 because she found it hard to speak to girls in real life. She nicked the photos of the "half-Filipino, half-Latino" man from an American's Myspace page.
Newland told the victim that Kye had been in a car crash and had a brain tumour, so he couldn't see her in person.
Bizarrely, she then "introduced" the victim to herself through Kye, and they developed a close friendship.
Newland and her alter ego shared a birthday, liked RnB music and chick flicks, and had a dog called Gypsy, the trial was told.
As Fortune, Newland sent the victim an eternity ring through the post and they first met up in February 2013.
The complainant told the court: "Every time I met up with Kye Fortune I either had the mask on already or he would wait outside the door and I would put it on.
"I was so desperate to be loved. It's pathetic, so desperate for love, so desperate.
"We were just lying there, just cuddling, sometimes we would watch films, sometimes we would just talk. It sounds stupid to say but it was a proper relationship, just normal."
She said she was convinced throughout Fortune was a man, had told colleagues she was engaged, and said she was not attracted to women.
Another woman was duped by Newland.
She smelt a rat when she spotted Gypsy the dog on Newland's Facebook page and recognised it from a Facetime chat she had had with Fortune.
She fronted Newland up on the phone and realised from her voice that she had been pretending to be Fortune.
The woman stated: "I knew that Gayle Newland had pretended to be Kye Fortune.
"I hung up immediately. I felt stupid."
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