Tillage, as a key agricultural operation, has an important influence on soil properties and crop productivity. However, tillage at the same depth is not always the best choice as differences in soil texture, compacted topsoil, or plow pan at different depths, crop rotation, and root penetration potential signal that the depth of tillage should take greater account of the factors involved. Variable depth tillage (VDT) is an important precision farming operation, linking soil, plants, tillage machinery, smart sensors, measuring devices, computer programs, algorithms, and variability maps. This topic is important from an agronomic, energy, and environmental perspective. However, the application of VDTs in practice is currently still very limited. The aim of this study was to carry out a detailed review of scientific work on variable depth tillage, highlighting the importance of soil compaction and VDT; the measurement methods and equipment used; and the impact on soil, crops, the environment, and the economy. Based on the reviewed studies, there is a lack of studies that use fully automated depth control of tillage systems based on input data obtained with on-the-go (also known as online) proximal soil sensing. In precision agriculture, rapidly developing Internet of Things technologies allow the adaptation of various farming operations—including tillage depth—to site-specific and temporal conditions. In this context, the use of proximal soil sensing technologies coupled with electromagnetic induction, gamma rays, and multi-sensor data fusion to provide input for recommended tillage depth would be beneficial in the future. The application of VTD in specific areas is promising as it helps to reduce the negative effects of soil compaction and avoid unnecessary use of this expensive and environmentally damaging technological operation.