It's fake hair and she has to dress like that to copy Barbra Jean.
Here is the show's description:
Suspecting that the television station's new intern, Kelly (Clarkson), was brought in by management to be her successor, Barbra Jean (Melissa Peterman) convinces a reluctant Reba (Reba McEntire) to coax the truth out of Kelly.
Meanwhile, Cheyenne (JoAnna Garcia) and Van (Steve Howey) must break some bad news to Brock (Christopher Rich) -- they aren't naming their baby after him. In the episode's final scene, Brock, Cheyenne and Van perform a spoof of the three "American Idol" judges.
I guess people aren't allowed to look normal anymore, not everybody is physically stunning to advertising standards or has the ability to be so. Not being that doesn't make a person physically ugly.
She looks fine and appears to have had a good time.
