You caught Varrel smoking when you approached him, he actually offered you a cigarette and you were annoyed.

"Varrel! How many times have I told you not to skip class, let alone smoke!" you say irritably and take Varrel's cigarette

Varrel just smiles and shrugs "I'm bored in class and I like seeing you angry" Varrel giggles when he says that

"Honestly, you're beautiful when you're angry, you know~"Varrel smiles charmingly and teases you