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The Clarets boss was sent to the stands by ref Richard Beeby following the first of many incidents involving John McGreal and Gills striker Darren Byfield.
The Clarets fell behind in the fifth minute as Welsh international striker Iwan Roberts deflected a shot from John Hills past a stranded Danny Coyne. Hills was also involved in the Gills second goal with a pinpoint pass over the Burnley defence to send Byfield clear to score.
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Tempers flared as Hyde threw the ball in Byfield's face and was shown the red card. Coyne parried the resulting spot-kick from Hills only for the referee to rule that it be retaken.
Coyne then outsmarted Hills for a second time diving to his right to deny the Gills full-back.
Burnley's consolation was a headed goal from striker Ian Moore three minutes from time.