Thin and thick disks are found in most spiral galaxies, yet their formation scenarios remain uncertain. Whether thick disks form through slow or fast, internal or environmental, processes is unclear. The physical origin of outer truncations in thin and thick disks, observed as a drop in optical and near-infrared (NIR) surface brightness profiles, is also a much debated topic. These truncations have been linked to star formation (SF) thresholds in Milky-Way-type galaxies, but no such connection has been made for their low-mass counterparts or in thick disks. Our photometric analysis of the edge-on galaxy UGC 7321 offers a possible breakthrough. This well-studied diffuse, isolated, bulgeless, ultra-thin galaxy is thought to be under-evolved both dynamically and in SF. It is an ideal target for disentangling internal effects in the formation of thick disks and truncations. Our axial light profiles from deep far- and near-ultraviolet (GALEX) images, tracing recent SF, and optical (DESI grz) and NIR (Spitzer 3.6 μm) images, tracing old stellar populations, enable a detailed identification of an outer truncation in all probed wavelengths in both the thin and thick disks. After deprojecting to a face-on view, a sharp truncation signature is found at a stellar density of 1.5 ± 0.5 ℳ⊙ pc−2, in agreement with theoretical expectations of gas density SF thresholds. The redder colours beyond the truncation radius are indicative of stellar migration towards the outer regions. We thus show that thick disks and truncations can form via internal mechanisms alone, given the pristine nature of UGC 7321. We report the discovery of a truncation at and above the mid-plane of a diffuse galaxy that is linked to a SF threshold; this poses a constraint on physically motivated disk size measurements among low-mass galaxies.