This paper studies and improves the stability of a Finite Difference Time Domain (FDTD) subgridding method based on the orthogonalized integral-based methodology. First, we identify the electric and magnetic field components of the FDTD lattices used at the interface between different mesh regions playing a critical role in its stability. Then, we employ them to find a closed criterion for the Courant-Friedrichs-Lewy Number (CFLN). Next, we analyze the stability by the classical spectral method and validate it with numerical heuristic simulations, proving the methodology used in the analytical approach. This information is used to devise a Locally Enlarged Cell Technique (LECT) to modify locally the scheme used to update the field components identified as most critical for stability so that an increased time step can be used. Finally, we analyze the effect of these modifications on the accuracy of the method for typical transmission and scattering problems.