Assuming your variable @var3 stores 'ASC' or 'DESC' keywords, you can write something like this:
order by
case when @var1 = 'priority' and @var3 = 'DESC' then priority end DESC,
case when @var1 = 'priority' and @var3 = 'ASC' then priority end ASC,
case when @var2 = 'report_date' and @var3 = 'ASC' then report_date end ASC,
case when @var2 = 'report_date' and @var3 = 'DESC' then report_date end DESC