The two bit normal Gray code is generated below.
In the above, we have written a zero and one for the normal Gray code for n = 1. In the second step, we draw a line of reflection and use the bits generated earlier on top of the line. Below the line we write the reflected bits as shown. To obtain the Gray code for n = 2, we prefix the entries above the line with a zero and with a one below the line. Continue this procedure to determine the 3 bit normal Gray code.