Diode small signal resistance, also known as dynamic resistance, is defined as the derivative of voltage with respect to current (dV/dI) at a specific operational point on the voltage-current (VA) curve. Unlike resistors, which have a constant resistance represented by a straight line on a V vs I graph, diodes exhibit a curved relationship, making their resistance variable. The small signal resistance is determined at a particular bias or DC operating point and is only applicable for small deviations from this point. Understanding this concept is crucial for accurate diode modeling in electronic circuits. The discussion emphasizes the importance of recognizing the non-linear characteristics of diodes in circuit analysis.