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Is "https://gitlab.mydomain" the actual URL to your self hosted gitlab instance or just text you placed there for the screen image? Did you try with the actual URL for your self hosted gitlab instance?
Is your gitlab instance protected by a firewall? You may need to adjust the firewall settings to allow traffic from Atlassian Cloud into the instance.
I am not a networking expert nor do I have any experience with Cloudflare. I recommend that you consult with experts in those technologies to confirm conclusively that the Cloudflare configuration is not blocking the traffic from Atlassian Cloud to your Gitlab instance.
You may also want to consult with the vendor of the Gitlab for Jira app you are using, to get more guidance about integrating Jira Cloud with self hosted Gitlab.
I have not tried any cost-free solutions.
Gitlab for Jira Cloud is free. The listing for the app says that it works with self-hosted Gitlab. If that was the app you were using then you should consult with the vendor of that app to get more guidance.
Their listing claims that it does. Maybe you should contact the app vendor about that.