Separation logic is a well-known assertion language for Hoare-style proof systems. We show that first-order separation logic with a unique record field restricted to two quantified variables and no program variables is undecidable. This is among the smallest fragments of separation logic known to be undecidable, and this contrasts with decidability of two-variable first-order logic. We also investigate its restriction by dropping the magic wand connective, known to be decidable with non-elementary complexity, and we show that the satisfiability problem with only two quantified variables is not yet elementary recursive. Furthermore, we establish insightful and concrete relationships between two-variable separation logic and propositional interval temporal logic (PITL), data logics, and modal logics, providing an inner circle of closely-related logics.