The type that would match the function returned from invoking useState would be:
setMyVar: (value: boolean | ((prevVar: boolean) => boolean)) => void;
If we look at the type definition file from DefinitelyTyped [1], we can see that the second type in the return type is a dispatch:
function useState<S>(initialState: S | (() => S)): [S, Dispatch<SetStateAction<S>>];
Thus the generic type provided is passed through to SetStateAction<S>, which is defined as:
type SetStateAction<S> = S | ((prevState: S) => S);
So essentially, an interface for your component would be the following:
interface IProps {
myVar: boolean;
setMyVar?: (value: boolean | (prevVar: boolean) => boolean) => void;
}
As @Retsam said, it’s best to use React’s exported types:
import { Dispatch, SetStateAction } from "react";
interface IProps {
myVar: boolean;
setMyVar?: Dispatch<SetStateAction<boolean>>;
}
References:
[1] https://github.com/DefinitelyTyped/DefinitelyTyped/blob/master/types/react/index.d.ts#L845