Three-dimensional discrete dislocation dynamics (3D-DDD) simulations reveal that, with reduction of sample size in the submicron regime, the mechanism of plastic flow localization in irradiated materials transitions from irradiation-controlled to an intrinsic dislocation source controlled. Furthermore, the spatial correlation of plastic deformation decreases due to weaker dislocation interactions and less frequent cross slip as the system size decreases, thus manifesting itself in thinner dislocation channels. A simple model of discrete dislocation source activation coupled with cross slip channel widening is developed to reproduce and physically explain this transition. In order to quantify the phenomenon of plastic flow localization, we introduce a “deformation localization index,” with implications to the design of radiation-resistant materials.