In Wald section 9.2 page 221 he says that
We turn our attention; now , to null geodesic congruences. Again, we parameterize the geodesics by an affine parameter $\lambda$, but , unlike the timelike case, we now have no natural way of normalizing the tangent field $K^\alpha$ and thereby adjusting the scale of $\lambda$ on different geodesics . In the timelike case, we restricted consideration to deviation vectors $\eta^\alpha$ orthogonal to $\xi^\alpha$ . There actually were two independent (though related) reasons for doing so. (1) We have $\xi^\alpha \nabla_\alpha (\xi_\beta \eta^\beta)=0$ provided $\xi^\alpha \xi_\alpha $ is normalized to be constant. Thus, $\xi_\alpha \eta^\alpha$ is constant along each geodesic, and the behavior of the "non orthogonal" partof $\eta^\alpha$ is uninteresting. (2) Deviation vectors which differ only by a multiple of $\xi^\alpha$ represent a displacement to the same nearby geodesic. Orthogonality fixes a natural "gauge condition" on $\eta^\alpha$.
In the case of a null geodesic congruence, the above reasons for restricting the choice of deviation vector still apply, but now they lead to two independent restrictions. First, for any deviation vector $\eta^\alpha$, we again have $k^\alpha \nabla_\alpha (k_\beta \eta^\beta)=0$, so $k^\alpha \eta_\alpha $ does not vary along each geodesic. This implies that an arbitrary deviation vector $\eta^\alpha$ may be written as the sum of a vector not orthogonal to $k^\alpha$ which is parallelly propagated along the geodesic, plus a vector perpendicular to $k^\alpha$ .(Note, however, that there is no natural, unique way of decomposing $\eta^\alpha$ in this manner.) Thus, the behavior of the "nonorthogonal" part of $\eta^\alpha$ again is uninteresting, and we may restrict consideration to deviation vectors satisfying $\eta^\alpha k_\alpha=0$. Second, deviation vectors which differ only by a multiple of $k^\alpha$ again represent a displacement to the same nearby geodesic . Thus, the physically interesting quantity is really the equivalence class of deviation vectors, where two deviation vectors are considered equivalent if their difference is a multiple of $k^\alpha$.Since $k^\alpha$ is null and thus is orthogonal to itself, this second restriction is independent of the first restriction, and it reduces the physically interesting class of deviation vectors to a two-dimensional subspace.
I am not able to understand the second reason in timelike and null case case i.e what does he mean that deviation vectors which differ by multiple of $\xi^\alpha$ in timelike or $k^\alpha$ for null case will represent displacement to the same nearby geodesic?
How does in null case this reasoning reduces deviation vectors to 2 dimensional subspace?