The name Vardilmë is not explained, but it seems likely to contain a reference to the Vala Varda. Many of Vardilmë's immediate family had names relating to the Valar (such as her brother Aulendil, or her nephew Oromendil, whose names connect them to the Valar Aulë and Oromë, respectively). The connection is even more direct for her father Vardamir, and doubtless this influenced the choice of name for Vardilmë. The full meaning of the name, including the -ilmë ending, is less clear, but it perhaps represents a contracted feminine form with the meaning 'devoted to Varda' (where the masculine equivalent would probably be Vardandil).
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