This paper presented a fundamental investigation on the exit-chipping formation mechanisms involved in rotary ultrasonic drilling (RUD) and conventional drilling (CD) of glass BK7. It was found that the mutual tool-material extrusion initially activated the subsurface crack with the maximum depth (incipient crack) at the margin of the machined surface, and its penetration of the undrilled thickness brought about the emergence of the exit-chipping at Region I. Subsequently, the opposite propagations of two ring-cracks along the circumferential direction of the drilled hole were conducive to the collapse of the machined cylinder, thus leading to the appearance of the exit-chipping at Region II. Ultrasonic superposition significantly decreased the actual undrilled thickness of the machined surface, while slightly increased the exit-chipping width. All the exit-chippings, generated with and without ultrasonic, exhibited the elliptic and symmetrical morphologies accompanied by the corrugated stripes winding the entire chipping surfaces. The quantitative relationship between the instantaneous extrusion pressure and the propagation direction of the incipient crack was proposed, revealing that the propagation angle was inversely proportional to the extrusion pressure. Ultrasonic superimposition augmented the extrusion pressure exerted the machined surface, which reduced the propagation angle of the incipient crack. The elliptic morphology characteristics of the exit-chipping were attributed to the parabolic variation of the additional bending moment with the circumferential spreading of the ring-crack. Ultrasonic superposition increased the propagation angle of the ring-crack, thus deteriorating the exit quality of the drilled hole.