Gil, who began his career with Real Salt Lake, has made 17 appearances for the Lions since joining from Mexican side Queretaro early in the 2017 season, making six starts.
The 23-year-old midfielder played for Real Salt Lake from 2010 to 2015, appearing in at least 24 games each season. A decorated U.S. youth international, Gil also has two caps with the senior squad.
"We're pleased to be able to bring in a creative, forward-thinking midfielder like Luis who can integrate quickly and add depth to our attacking group," said Rapids interim general manager Padraig Smith in a news release.
Powers, a 26-year-old midfielder who has spent his entire MLS career with Colorado, has played 15 times (11 starts) for the Rapids this year, though he has seen his playing time decrease after starting 24 matches and logging over 2,000 minutes for the club during the 2016 season.
"Dillon is a creative midfielder who has proven himself in this league over the past four seasons," Orlando general manager Niki Budalic said. "We are pleased to add more depth to our midfield with this trade and look forward to integrating Dillon into the team."
The 2013 MLS Rookie of the Year is fourth on Colorado's all-time appearance list, having played in at least 30 matches in each season prior to 2016.
Goal was the first to report the trade was in the works Wednesday night.