Denote $A$ and $B$ the centers, and $R$ and $r$ the radii of the bigger and the smaller circle, respectively.
Second question
Radical axis $\mathcal{P}$ is orthogonal to $AB$, and is closer to the bigger circle. This follows immediately from $D^2-R^2=d^2-r^2,$ which is equivalent to $$D^2-d^2=R^2-r^2.\quad\quad\quad(1)$$
Here $D$ denotes the distance from a point on $\mathcal{P}$ to $A,$ and $d$ the distance from this same point to $B.$
First question
For the point $E$ common to $AB$ and $\mathcal{P},$ we have $D+d=|AB|,$ from where $$D^2-d^2=|AB|\,\left(|AB|-2d\right)$$ and $$D^2-d^2=|AB|\,\left(2D-|AB|\right)$$ Putting together with (1) we obtain $$|AB|\,\left(|AB|-2d\right)=R^2-r^2=|AB|\,\left(2D-|AB|\right).$$ If $A,B$ do not move and $r$ is constant, then increasing $R$ implies decreasing $d$ and increasing $D.$ That is, $\mathcal{P}$ gets closer to the CENTER of the smaller circle and moves away from the center of the bigger circle.