Recent litigation has made it possible for veterans to change their name on the DD-214 form.
Although current regulations restrict the ability of transgender individuals to serve openly, the National Transgender Discrimination Survey (NTDS) showed that 20% of transgender adults are veterans who have served in the military at some point. As transgender vets know, records with former names or outdated gender designations can compromise privacy and lead to harassment when applying for jobs or benefits and in other situations. Fortunately, it is now easier to update these records.
For those wanting to update their record on their own, TAVA would like for those receiving a decision to take a brief survey, so that we can keep track of the results: http://transveteran.org/dd-form-214/
Here is a comprehensive guide to changing your name on your DD 214: Military Records Resource Jan 2015 FINAL.
In addition, if you wish to speak to an attorney on this issue, please contact the LGBT Bar Association: http://lgbtbar.org/who-we-are/staff/.
To learn how these veterans changed their name on their DD-214, please read these articles: http://lgbtbar.org/what-we-do/programs/trans-military-advocacy/