Variation in living systems and how it cascades across organizational levels is central to biology. To understand the constraints and amplifications of variation in collective systems, I mathematically study how group-level differences emerge from individual variation in eusocial-insect colonies, which are inherently diverse and easily observable individually and collectively. Considering collective processes in three species where increasing degrees of heterogeneity are relevant, I address how individual variation scales to colony-level variation and to what degree it is adaptive. In Chapter 2, I introduce a Markov-chain decision model for stochastic individual quorum-based recruitment decisions of rock-ant workers during house hunting, and how they determine collective speed--accuracy balance. Differences in the average threshold-dependent response characteristics of workers between colonies cause collective differences in decision-making. Moreover, noisy behavior may prevent drastic collective cascading into poor nests. In Chapter 3, I develop an ordinary differential equation (ODE) model to study how cognitive diversity among honey-bee foragers influences collective attention allocation between novel and familiar resources. Results provide a mechanistic basis for changes in foraging activity and preference with group composition. Moreover, sensitivity analysis reveals that the main individual driver for foraging allocation shifts from recruitment (communication) to persistence (independent effort) as colony composition changes. This might favor specific degrees of heterogeneity that best amplify communication in wild colonies. Lastly, in Chapter 4, I consider diversity in size, age, and task for nest defense in stingless bees. To better understand how these dimensions of diversity interact to balance defensive demands with other colony needs, I study their effect on colony size and task allocation through a demographic Filippov ODE model. Along each dimension, variation is beneficial in a certain range, outside of which colony adaptation and survival are compromised. This work elucidates how variation in collective properties emerges from nonlinear interactions between varying components in eusocial insects, but it can be generalized to other biological systems with similar fundamental characteristics but less empirical tractability. Moreover, it has the potential of inspiring algorithms that capitalize on heterogeneity in engineered systems where simple components with limited information and no central control must solve complex tasks.