Variation in true displacement is caused by variation of actual loading. Virtual displacement is any one which can take place without violation of constraints.
The principle of virtual displacement in structural and solid mechanics is an alternative form of equilirium expression of a body. This principle states that for any admissible virtual displacement, the total virtual work should vanish. Here, virtual displacement means an imaginary displacement (not a real displacement due to external loads) that we imagine to take place at the body, in addition to the real displacement.
The variation in displacement is a term that I think originates from the concept of calculus of variation. It means that we take a infinitesimal change in the displacement field, just like taking a differential of an independent variable in traditional calculus. Applying this concept in the area of structural and solid mechanics, the variation in displacement can be interpreted as virtual dispalcement. Thus, they a basically identical.
We can treat virtual displacements as the sum of real displacements and displacement variations. Since the total work of real displacements is equal to zero, we deal only with displacement variations.