We develop a comprehensive, mathematically closed, and self-consistent formal framework for Universal Modular Dynamics (UMD), establishing a paradigm shift wherein physical reality emerges as a stable, recursive fixed-point projection (Ω⋆ = H(Ω⋆)) of higher-order meta-law dynamics driven by a meta-time parameter (T) operating on a pre-physical possibility space. Rather than treating spacetime, quantum fields, or cosmological constants as fundamental primitives, we derive the continuous Riemannian spacetime metric gμν, relativistic causality governed by an invariant maximal velocity (c ≡ vmax), and operational locality from the intrinsic logarithmic scaling and covariance structure of the modular spectral distribution p(k) = 1 N P δ(k − ki) associated with the relative modular generator Kρ|σ = −log ρ+log σ. By introducing a precise sector decomposition induced by a pointer algebra Z, we demonstrate that standard threegeneration fermion mass hierarchies naturally appear as dynamically stable superselection sectors (ρZ = P PμρPμ), providing a minimal, self-consistent origin of flavor structures without ad hoc parametrization or fine-tuned flavor matrices. Furthermore, we investigate the statisticalmechanics mappings and Lyapunov-type matrix flows to track measurement-induced criticality, showing that covariance-induced suppression enforces a universal logarithmic modular spectral compression law (Var(k) ∼ (log t + log L)−1). Finally, we establish the thermodynamic thresholds (ΦNG) governing the total breakdown of Riemannian triangle inequalities, event ordering, and subsystem factorization, defining the non-geometric phase transitions relevant to the early Universe singularity and black hole interiors. This unified framework bridges the epistemic horizons of embedded observers, information theory, geometry, and quantum gravity, proving that reality without an external foundation can be fully formalized as an emergent, dynamically stabilized informational structure.