How we’re exposed to an ingredient matters greatly in terms of our long-term health. 
  
Research shows that inhaling titanium dioxide particles in significant quantities over time can cause adverse health outcomes. Unless you work in an industrial setting, inhaling substantial amounts of titanium dioxide is highly unlikely. 

Micronized titanium dioxide doesn’t penetrate skin so there’s no need to be concerned about it getting into your body. Even when titanium dioxide nanoparticles are used, the molecular size of the substance used to coat the nanoparticles is large enough to prevent them from penetrating beyond the uppermost layers of skin. This means you’re getting the sun protection titanium dioxide provides with no risk of it causing harm to skin or your body. The coating process improves application, enhances sun protection, and prevents the titanium dioxide from interacting with other ingredients in the presence of sunlight, thus enhancing its stability. It not only makes this ingredient much more pleasant to use for sunscreen, but also improves efficacy and eliminates safety concerns. Common examples of ingredients used to coat titanium dioxide are alumina, dimethicone, silica, and trimethoxy capryl silane.

Source: Tranalysis and China Customs