We present a variational quantum algorithm for differentiating several hypotheses encoded as quantum channels. Both state preparation and measurement are simultaneously optimized using success probability of single-shot discrimination as an objective function which can be calculated using localized measurements. Under constrained signal mode photon number quantum illumination we match the performance of known optimal 2-mode probes by simulating a bosonic circuit. Our results show that variational algorithms can prepare optimal states for binary hypothesis testing with resource constraints. Going beyond the binary hypothesis testing scenario, we also demonstrate that our variational algorithm can learn and discriminate between multiple hypotheses.