Tandy 1000 MS-DOS Reference Manual page 365

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Appendix C / Installable Device Drivers
dir specifies the number of entries allowed in a virtual disk's
directory. You can select a value in the range 2 to 512. The
default value is 64. VDISK might adjust the dir value up to the
nearest sector size boundary. If the virtual disk is too small to
hold the FAT
(file allocation table),
the directory, and at least two
sectors, VDISK reduces the directory size. The volume label
resides in one of the directory entries.
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