Currently, chunks are rendered based on x and z values, regardless of your y level. Because of this, you can only fit in so much block height before performance becomes a big issue. However, if there were to be a new chunk border in the sky, the build height could in theory, be infinite. This would work by placing the y border multiple blocks above where terrain could naturally generate. This chunk will load when in render distance only if a block is put within the above chunk. When this event occurs, the game will log that information into the corresponding chunk below, and will unload the info to the client, which will determine if the chunk needs to be rendered. This method increases performance significantly higher than if each chunk were to be loaded separately. Finally, if all blocks were removed from the previously loaded chunk, data would no longer be logged causing unnecessary chunk loading, and the world gen code will run the chunk data check as false.
With all the technical details aside, build height could not only be nearly doubled, but since the y chunk border is lower than the current build height, there leaves the possibility for the world depth to be increased. Even if the limit changes are not as drastic, with the chunks split between two levels, chunk loading should actually be faster than it currently is.
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