Grid-forming inverters are sensitive to large grid disturbances that may engender overcurrent due to their voltage source behavior. To overcome this critical issue and ensure the safety of the system, current limitation techniques have to be implemented. In this context, the variable virtual impedance (VI) appears as a suitable solution for this problem. The design of the variable virtual impedance basically rests on static considerations, while, its impact on the system stability and dynamics considering both small-signal and large-signal aspects can be significant. This paper proposes small-signal and nonlinear power models to assess the impact of the virtual impedance parameters on the grid current dynamics and on the angle stability. Thanks to the developed theoretical approaches in this paper, the virtual impedance ratio X/R, which is the unique degree of freedom has shown a contradictory effect on the small and large signal stability. To overcome this constraint, a Variable Transient Virtual Resistance (VRTVR) has been proposed as an additional degree of freedom to the variable virtual impedance. It acts as a transient damper to ensure the maximum angle stability margin allowed by the variable virtual impedance. The effectiveness of the proposed control has been proven through time-domain simulations.