1. A method for dithering M-bit video data to generate N-bit video data, the method comprising: utilizing a plurality of large dithering masks to perform dithering on a first set of least significant bits (LSBs) of the M-bit video data, wherein each of the plurality of large dithering masks comprises a plurality of sub-dithering masks, and each of the plurality of sub-dithering masks comprises a plurality of dithering thresholds; utilizing a plurality of small dithering masks to perform dithering on a second set of LSBs of the M-bit video data, wherein each of the plurality of small dithering masks comprises a plurality of dithering thresholds; and adjusting the content of at least one of the plurality of large dithering masks and/or the content of at least one of the plurality of small dithering masks on a frame-by-frame basis.