I have to say there is a comfront zone in dance, but at the same time there isn't there will always be things that are uncomfrontable, but it just depends on the situation and whether it is good or bad. I myself have a fun and flirtous teacher, but this is not bad,and yes sometimes when we make body contact while dancing it is uncomfrontable, but this is normal, but if you are uncomfrontable because of what they are saying and sometimes doing, let them know or if it is getting serious find a better studio, but you best bet is to let the owner know,and if necessary ask for a new instructor, and make sure you pick the instructor not the owner because you are paying for the lessons not them! Also, instructors should understand that being uncomfrontable sometimes is part of leaning to dance and they should not push you to do something you feel uncomfrontable doing, just tell them how you feel, and let them know you want to maybe try it later.
Hope that helps.