The first layer was the outer layer of the piece of wood that Pinocchio was carved from.

The second layer was the donkey flesh that the fish ate off of Pinocchio, essentially ‘carving’ the puppet back to his original form

 

 

 

 

 

(back to reason one)

When the Blue Fairy magically turns Pinocchio into a real boy, his puppet self is described as yet another layer that the puppet sheds -- this time, the final layer.

Pinocchio wonders:

"And the old Pinocchio of wood, where could he have gone to hide?"

Geppetto responds:

"There he is over there"

The puppet is de-souled in the end, as he is described as being "propped up against a chair." But the new Pinocchio has the same 'soul' as the first. The supposed transformation seems a little superficial in this light.

As has been investigated in these pages, there is much evidence of Pinocchio's humanity throughout his adventures as a puppet.