In plain language
A fixed 60Hz display redraws on a schedule. A game rarely delivers frames on that same schedule, so a frame arrives mid-refresh and you see tearing, or the console holds it and you see stutter.
Variable refresh rate lets the display redraw when the frame is ready, within a supported window — often something like 40 to 120Hz. FreeSync and G-Sync are the PC branding of the same idea.
Why it matters in your setup
The window matters as much as the feature. Below the bottom of the range the display falls back to fixed refresh, so a game hovering at 35fps on a 40–120Hz panel gets no benefit.
And VRR only gets used if it is advertised. A capable console and a capable television will still run at fixed refresh if the capability data reaching the console does not mention VRR — which is exactly what an older receiver or switch in the chain tends to cause.
What the DR HDMI 8K does with it
VRR is one of the video flags in the DR HDMI 8K's EDID controls: you can enable it, disable it, or leave the sink's setting alone. Thirteen of the built-in EDID tables are VRR profiles across 8K60, 4K120 and 4K60. The OLED also reports the VRR range actually being advertised, so you can confirm what the source is being told rather than guessing.
Need the hardware?
Open the DR HDMI 8K product page on HDfury.uk.