Artificial crystals synthesized by atomic-scale epitaxy provides the ability to control the dimensions of the quantum phases and associated phase transitions via precise thickness modulation. In particular, reduction in dimensionality via quantized control of atomic layers is a powerful approach to revealing hidden electronic and magnetic phases. Here, we demonstrate a dimensionality-controlled and induced metal-insulator transition (MIT) in atomically designed superlattices by synthesizing a genuine two dimensional (2D) SrRuO3 crystal with highly suppressed charge transfer. The tendency to ferromagnetically align the spins in SrRuO3 layer diminishes in 2D as the interlayer exchange interaction vanishes, accompanying the 2D localization of electrons. Furthermore, electronic and magnetic instabilities in the two SrRuO3 unit cell layers induce a thermally-driven MIT along with a metamagnetic transition.