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It is shown that structural disorder—in the form of anisotropic, picoscale atomic displacements—modulates the refractive index tensor and results in the giant optical anisotropy observed in BaTiS₃, a quasi‐1D hexagonal chalcogenide. Single‐crystal X‐ray diffraction studies reveal the presence of antipolar displacements of Ti atoms within adjacent TiS₆ chains along the c‐axis, and threefold degenerate Ti displacements in the a–b plane. ^47/49Ti solid‐state NMR provides additional evidence for those Ti displacements in the form of a three‐horned NMR lineshape resulting from a low symmetry local environment around Ti atoms. Scanning transmission electron microscopy is used to directly observe the globally disordered Ti a–b plane displacements and find them to be ordered locally over a few unit cells. First‐principles calculations show that the Ti a–b plane displacements selectively reduce the refractive index …