"Incremental impedance" or resistance is simply the derivative (slope) dV/dI of the function V(I) near the operating point of the device.
The operating point is the voltage and current (in this case Vds and Id) when the input signal is 0.
For FETs, BJTs, and vacuum pentodes operating as amplifiers, if you make a small change in V about that point, you get a very small change in I, hence the derivative is high, and the incremental resistance is high.