It is possible to get nonlinear interactions among electromagnetic
waves in plasmas, but you generally need very large amplitudes to get
nonlinearities to kick in.

I'm guessing that "space modulation" has something to do with multipath
reflections or something; the VOR signal that rotates is going to be
modulated by the buildings, mountains, and so forth around the
transmitter, generally, the "space"

Just a guess; I don't really know anything about VOR.

Dan