Low-oxygen high-purity titanium (oxygen concentration ≤ 500 ppm) is a critical material for advanced semiconductor and biomedical applications. Current deoxidation methods limit oxygen concentration in titanium to approximately 1000–2000 ppm, failing to meet the demand for ultra-low oxygen levels in high-performance materials. This study investigated the preparation mechanism and conditions for low-oxygen high-purity titanium utilizing a molten salt thermochemical method, employing Y as the deoxidant with a theoretical deoxidation limit below 10 ppm. We experimentally explored the deoxidation mechanisms of titanium using Y/YOCl/YCl3 and Y/Y2O3 systems, successfully reducing the oxygen concentration in titanium to 200 ppm, and proving that the Y/YOCl/YCl3 system is more efficient than the Y/Y2O3 system. Additionally, the titanium samples were analyzed using SEM-EDS, XRD, XPS, and 3D surface profilometry before and after deoxidation. These analyses examined the impact of the deoxidation process using Y on the crystal structure, oxide film, and surface roughness of titanium specimens, which are useful for understanding the deoxidation mechanism. During the sintering process of titanium powder attached to Y, the deoxidation process will produce YOCl or Y2O3. The formation of these deoxidation products leads to local oxygen diffusion, and the crystals of YOCl or Y2O3 are gathered at grain boundaries, which will resolve during the subsequent acid etching process, thus reducing the oxidation concentration of the titanium. The above results provide further theoretical guidance and technical support for the production of ultra-high-purity titanium powder.