capturing image data associated with a view of a real-world environment using an imaging system of a head-mounted display system;

displaying a pass-through view of the real-world environment, based at least in part upon the image data, to a user in a display of the head-mounted display system;

receiving an indication of a reference elevation representing a plane of the real-world environment;

monitoring an orientation of a direction indicator to generate first orientation data and to establish, with respect to the reference elevation, a virtual boundary for a virtual-world environment;

displaying the virtual boundary in the pass-through view of the real-world environment;

determining whether a dimension of the virtual boundary satisfies a minimum threshold value;

displaying a notification when the dimension of the virtual boundary does not satisfy the minimum threshold value;

receiving a request from a user to modify the virtual boundary;

in response to the request from the user, monitoring the orientation of the direction indicator to generate second orientation data; and

modifying the virtual boundary based on the reference elevation and the second orientation data.