The burgeoning fields of spintronics and topological electronics require materials possessing a unique combination of properties: ferromagnetism, metallicity, and chemical stability. SrRuO3 (SRO) stands out as a compelling candidate due to its exceptional combination of these attributes. However, understanding its behavior under tensile strain, especially its thickness-dependent changes, remains elusive. This study employs machine-learning-assisted molecular beam epitaxy to investigate SRO films with thicknesses from 1 to 10 nm. This work complements the existing focus on compressive-strained SRO, opening a new avenue for exploring its hitherto concealed potential. Using soft X-ray magnetic circular dichroism, we uncover an intriguing interplay between film thickness, electronic structure, and magnetic properties. Our key findings reveal an intensified localization of Ru 4d t2g-O 2p hybridized states at lower thicknesses, attributed to the weakened orbital hybridization. Furthermore, we find a progressive reduction of magnetic moments for both Ru and O ions as film thickness decreases. Notably, a non-ferromagnetic insulating state emerges at a critical thickness of 1 nm, marking a pivotal transition from the metallic ferromagnetic phase. These insights emphasize the importance of considering thickness-dependent properties when tailoring SRO for next-generation spintronic and topological electronic devices.