I think there are a few issues in this thread, but for me, I was not able to add my ESPHome water sensor with the “gl” unit_of_measurement when I changed it according to the dropdown hint. (I read ‘gl’ as an abbreviation for gallons, even though I’ve never seen that either).
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I changed the unit_of_measurement in my ESPHome yaml to m³ and It was found. I tried changing it back to ‘gl’ to see what would happen, and I got this warning

So even though the dropdown “hint” asks for ‘gl’ or ‘m³’, the warning says it wants ‘m³ or ’ ft³’. If I change the unit_of_measurement in ESPHome to ‘gal’ it also works.
Here’s my working ESPHome water configuration:
- platform: pulse_counter
pin: D1
accuracy_decimals: 2
unit_of_measurement: 'GPH'
update_interval: 1s
name: "Main Water"
id: main_water
icon: mdi:water
filters:
# 330 pulses/L .00303 L/m * 15.8503 to get GPH
- multiply: 0.048031212
total:
unit_of_measurement: 'gal'
name: 'Total Main Water'
id: total_main_water
icon: mdi:water
device_class: water
filters:
# 330 pulses/L 3.78541 L/G
- multiply: 0.0008005217
So my problem was just confusion between what the dropdown says vs the warning vs what it really wants in addition to a lack of documentation here Integrating your water usage - Home Assistant (or maybe I just completely missed the relevant documentation). Hope it helps someone.