Magnetically-actuated continuum robots (MCRs) have the potential to be miniaturized to submillimeter sizes. However, their limited deformation modes hinder their ability to navigate through narrow and tortuous lumens. In this paper, we introduce a novel 2-degrees of freedom (DoF) MCR with diverse deformation modes. To validate the concept, a 20mm-long MCR is fabricated. We also present an optimization algorithm to expand the MCR’s workspace, relying on a deformation estimation algorithm that has been experimentally proven to have an error of less than 1.15mm on the fabricated prototype. The optimized MCR exhibits a 40% larger workspace compared to conventional MCRs. Additionally, we integrate the 2-DoF MCR with mechanical devices and propose a Jacobian-based control scheme for them. Experimental results confirm its capability for tip trajectory tracking tasks with an RMS error of 0.71mm and demonstrate its ability for obstacle avoidance. These innovations hold significant implications for the development of MCRs, paving the way toward more efficient interventional procedures.