Unfold in all directions

SOGL V0.12, 75 bytes

l√u²m√lH»{ā;l⁾:A∫Ba{bIwFIWhFbž;FIbI@ž}};}¹K⁴{ē2\⌡±e{@Κ};⁴┼┼};0E{ē2\⌡№:h++}╚

Try it Here!

This expects the input on the stack, so for ease-of-use I added , at the start. That can cause issues if the input contains only numbers so here is a a test-suite for that.

70 bytes √lH»{ā;l⁾:A∫Ba{bIwFIWhFbž;FIbI@ž}};}¹K⁴{ē2\⌡±e{@Κ};⁴┼┼};0E{ē2\⌡№:h++}╚ works too, but as I only now implemented on strings and the documentation didn't mention that it would floor the length I won't count it.

Explanation:

creating a square from the input

l       get the length of the input
 √      get its square root
  u     floor that
   ²    square it
    m   mold the input to that length
     √  convert it to a square

creating the unfoldings of the square - the idea is to cut out the inner squares to a new array

lH»{                              } (length-1)//2 times do
    ā;                                push an empty array below ToS
      l⁾                              push ToS.length - 2 (ToS here is the square or the previous unfolding)
        :A                            save a copy of that in the variable A
          ∫B                    }     repeat that amount of times, saving iteration on B - cutting the inner square to the empty array
            a{                 }        variable A times do
              bIw                         get the b+1th row of the previous unfolding
                 FIW                      get the (current loops iteration + 1)th character of that
                    h                     swap the 2 items below ToS - so the stack now is [..., prevUnfolding, newArray, character]
                     Fbž                  at [current loops iteration; b] insert that character in the array
                        ;                 swap the top 2 items - the stack now is [..., newArray, prevUnfolding]
                         FIbI@ž           at [current loops iteration+1; b+1] insert a space
                                 ;    get the now not empty array ontop of the stack

add the horizontal unfoldings

¹                    wrap the stack in an array
 K                   push the 1st item of that, which will function as the canvas
  ⁴{              }  iterate over a copy of the remaining items
    ē2\⌡               repeat (e++ divides by 2) times (default for the variable E is the input, which defaults to 0)
        ±                reverse the array horizontally
         e{  }         repeat e times
           @Κ            add a space before ToS
              ;⁴┼┼     add that horizontally before and after the canvas

add the veertical unfoldings

;                get the copy of the foldings above the canvas
 0E              reset the variable E to 0
   {         }   iterate the copy of the foldings
    ē2\⌡           repeat (e++ divides by 2) times (default for the variable E is the input, which defaults to 0)
        №            reverse the array vertically
         :h++      add that vertically before and after the canvas
              ╚  center the canvas vertically

Charcoal, 120 109 bytes

AI§⪪IXLθ⁰·⁵.⁰ηFη⊞υ✂θ×ιηF⁴«AυεJ⁰¦⁰F÷⁺¹η²«F⁴«F⁻η⁺κꧧεκ⁺μκ↷A⮌EεEε§ξν嶻A⎇﹪ι²Eε⮌λ⮌εεA⎇‹ι²⁻⁺²⁺κκη⁻η⁺κκκ¿﹪ι²Mκ¹M¹κ

Try it online! Note that has since been changed to and the link reflects this. Explanation:

       θ          Input string
      L           Length
     X  ⁰·⁵       Raise to the power 0.5
    I             Cast to string
   ⪪       .      Split on the decimal point
  §         ⁰     Take the first element (integer part)
 I                Cast to integer
A            η    Assign to h

Calculates h = int(sqrt(len(q))). (Floor was yet to be implemented...)

Fη⊞υ✂θ×ιη

Extracts the h slices of length h from the input. (Actually I don't bother truncating the slices to length h.) I use a for loop rather than a Map because I need to Assign the result of the Map somewhere and this is nontrivial when dealing with a Slice.

F⁴«

The unfolding happens 4 times, once for each direction (down, right, up, left as coded). The loop variable for this loop is i.

   Aυε

Take a copy of the sliced string.

   J⁰¦⁰

Jump back to the origin of the canvas so that each unfold starts with the h-by-h square in the same place.

   F÷⁺¹η²«

Repeat (h+1)/2 times; once for each unfold, plus once for the original square. The loop variable for this loop is k.

          F⁴«

Repeat 4 times, once for each side of the unfolded square. (I don't use the loop variable l.)

             F⁻η⁺κκ         Loop h-2k times, loop variable `m`
                    §εκ     Take the `k`th row
                   §   ⁺μκ  Take the `k+m`th column
                            Implicitly print the character

Print one side of the unfolded square. Since this is the kth unfold, the square's side is h-2k, and takes characters k away from the edge of the original square.

Pivot ready to print the next side of the square.

               Eε       Map over the array (element `m`, index `n`)
                 Eε     Map over the array (element `x`, index `p`)
                   §ξν  Take the `n`th element of `x`
              ⮌         Reverse
             A        ε Replace the array with the result

Rotate the sliced string. (Yes, that's a ξ. I don't get to use it often!) Eη would also work for the outer Map. The rotation also has the convenient side-effect of truncating the array's width to h.

             ¶»

After printing the side, the cursor moves off the edge of the square. Printing one character fewer fails for squares of side 1 and is less golfy anyway. Having previously pivoted, printing a newline conveniently moves the cursor back to the corner.

            ﹪ι²         Take `i` modulo 2
           ⎇            Choose either
                   ⮌ε   Reverse the array
               Eε       Map over the array (element `l`, index `m`)
                 ⮌λ     Reverse each element
          A          ε  Replace the array with the result

Flip the square vertically or horizontally as appropriate.

           ⎇‹ι²                 If `i` < 2
                  ⁺κκ           Double `k`
                ⁺²              Add 2
               ⁻     η          Subtract `h`
                        ⁺κκ     Else double `k`
                      ⁻η        Subtract from `h`
          ≔                κ    Assign back to `k`.

Calculate the displacement to the next unfold.

           ﹪ι²          Take `i` modulo 2
          ¿             If not zero
              Mκ¹       `k` across and 1 down
                 M¹κ    Else 1 across and `k` down

Move horizontally or vertically to the next unfold as appropriate.

Here's a link to the 97-byte version obtained by making use of all the latest Charcoal features including Floor: Try it online! Link is to verbose version of code.