Just adding these step by step instructions for later reference.
You can run a more complete Linux by running a Linux image from a micro SD card.
I have one Intel Galileo Gen 2 board on which i am working now. I have also created our custom Yocto Build system based on Intel Clanton which works fine without any issue.
I am using SD card as boot up process with boot folder, zimage, initramfs and full file system images. Now, I am planning to update all those images over the Air as a part of firmware update process.
So, do you have any idea or any information for that?