Magnetorheological (MR) fluid exhibits the ability to modulate its shear state through variations in magnetic field intensity, and is widely used for applications requiring damping. Traditional MR dampers use the current in the coil to adjust the magnetic field strength, but the accumulated heat can cause the magnetic field strength to decay if it works for a long time. In order to deal with this shortcoming, a novel MR damper is proposed in this paper, which is based on a variable displacement permanent magnet to adjust the output resistance torque and applied to an exoskeleton joint for human load transfer assistance. A finite element model is used to determine the size parameters of the magnet and separator, so that the maximum output torque is optimal and the torque is uniformly distributed with the magnet displacement. The MR damper was characterized and calibrated on the experimental bench to make it controllable. The novel design enables the torque mass density of the MR damper to reach 8.83Nmm/g, the torque volume density to reach 48.7N/mm2, and has stability for long-term operation. Based on the torque control method proposed, a preliminary human experiment is conducted. The ground reaction force (GRF) data of the subjects is analyzed here, which represents the effect of load transfer to the exoskeleton. Compared with no exoskeleton, the GRF with exoskeleton is significantly reduced: the peak GRF in early stance phase is reduced by 24.14%, and in late stance phase is reduced by 19.77%. Based on our net load benefit (NLB) and net force benefit (NFB) evaluation indicators, the effectiveness of the proposed MR damper exoskeleton for human weight bearing assistance is established.