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Q: I plan to use this to make potholders. How thick is it? If this is insulation and batting in one, would one layer be enough?

Yes one layer is sufficient. It is insulation and batting in one. Cannot be used in microwave.

Q: Can this be used for making lunch bags to keep food warm or cool?

I have only used this for heat purposes such as potholders, etc. It can not be used in the microwave because it is a metalized polyester. Here is what I found on the maker's site for a description. And it does state for HOT AND COLDToo Hot to Handle ~ Too Cold to Hold?Insul~Bright is a needle-punched, insulated material ideal for crafters. With today's focus shifting back to family and home, new and experienced sewers are choosing simple, practical projects for use in their homes and as gifts. Pot holders, oven mitts and casserole covers are all ideal projects made functional and safe with Insul-Bright. It consists of polyester fibers, needle-punched through a reflective metalized polyester film. The needled material is breathable and won't break down with washing. The polyester fibers resist conduction while the reflective metalized polyester film reflects radiant energy, hot or cold, back to its source.Insul~Bright is not recommended for microwave use. Insul~Bright can be used in clothing but is a little noisy as the film crinkles when moved. This noise is very attractive to both babies and animals, as they like to scrunch it up in soft books and toys.

Q: Can this be used for microwave bowl pot holders

No, it is not recommended for microwave use. It contains polyester and metalized polyester. This product is used to keep your dishes warm or cold after they have been cooked or refrigerated. You would need to use a 100% cotton batting, such as Quilter's Dream Cotton, for the microwave bowl holder.