In animal development, cellular diversity is generated within tissues which in turn are derived from germ layers. Similar to the germ layers in animals, plants establish three distinct tissue layers early in development which each give rise to a distinct set of cell types. To investigate the role of tissue-layer-specific cues in generating plant cellular diversity we studied the spatial regulation of an epidermal cell type, trichomes (hairs), by the two genes, GLABRA1 (GL1) and TRIPTYCHON (TRY). Ubiquitous expression of the positive regulator GL1 in the absence of the negative regulator TRY leads to ectopic trichome formation not only on additional organs but also in subepidermal tissue layers. Trichomes in inner tissue layers can differentiate the same morphology and show a spacing pattern comparable to trichomes in the epidermis. This clearly shows that cell type specification takes place downstream of tissue-specific cues. We propose a model of how the tissue and organ specificity of trichome induction is regulated in normal development.