Casing deformation and control for inclusion propagation in earth formations. A method of forming at least one inclusion in a subterranean formation includes the steps of: installing a liner within a casing section in a wellbore intersecting the formation; and expanding the liner and the casing section, thereby applying an increased compressive stress to the formation. Another method of forming the inclusion includes the steps of: installing an expansion control device on a casing section, the device including at least one latch member; expanding the casing section radially outward in a wellbore, the expanding step including widening at least one opening in a sidewall of the casing section, and displacing the latch member in one direction; and preventing a narrowing of the opening after the expanding step, the latch member resisting displacement thereof in an opposite direction.