To solve the limitations of reversible data hiding in encrypted domains (RDH-ED) that cannot be applied to a distributed variable security environment, a novel RDH-ED scheme based on variable threshold image secret sharing (VTSIS) is proposed. Initially, a security vulnerability analysis of existing changing thresholds in a bivariate polynomial-based secret image sharing (TCSIS) method is conducted and validated through experiments. Subsequently, enhancements are made to the VTSIS scheme to rectify the identified security loopholes. During the image encryption process, additional data can be embedded into the redundancy of VTSIS, which results in a large embedding rate and high security. Finally, theoretical analysis and experimental proofs are carried out for the proposed scheme, and the results show that our scheme broadens the application scenarios of RDH-ED. Notably, the scheme eliminates the need for preprocessing and has the advantages of high security, a large embedding rate, and complete reversibility.