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Turning a pristine Mott insulator into a correlated metal by chemical dopingis a common procedure in strongly correlated materials physics, e.g. underlyingthe phenomenology of high-$T_c$ cuprates. The ruthenate bilayer compoundCa$_3$Ru$_2$O$_7$ is a prominent example of a reversed case, namely acorrelated metal at stoichiometry that realizes a transition into an insulatingstate via Ti doping. We here investigate this puzzling metal-insulatortransition (MIT) by first-principles many-body theory and elucidate achallenging interplay between electronic correlations and symmetry breakings onthe Ru sublattice. While average effects on the Ca$_3$Ru$_2$O$_7$ crystalstructure are still relevant, key to the MIT is the cooperation of electroniccorrelations with the spatial inhomogeneity in the defect regime. Together theygive rise to the emergence of site-selective Mott criticality and competingorbital-ordering tendencies.

Spatial inhomogeneity and the metal-insulator transition in Ca$_3$(Ru$_{1-x}$Ti$_x$)$_2$O$_7$