We analyse instability and nonlinear stability in a layer of saturated double porosity medium. In a double porosity or bidisperse porous medium, there are normal pores which give rise to a macroporosity. But, there are also cracks or fissures in the solid skeleton and these give arise to another porosity known as micro porosity. In this paper, the macropermeability is horizontally isotropic, in the sense that the vertical component of permeability is different to the horizontal one which is the same in all horizontal directions. Thus, the permeability is transversely isotropic with the isotropy axis in the vertical direction of gravity. We also allow the micro permeability to be horizontally isotropic, but the permeability ratios of vertical to horizontal are different in the macro- and micro-phases. The effect of the difference of ratios is examined in detail.