  We have studied the evolution in the morphologies, sizes, stellar-masses,
colors, and internal color dispersion (ICD) of galaxies at z=1 and 2.3, using a
near-IR, flux-limited catalog for the HDF-N. At z=1 most luminous galaxies have
morphologies of early-to-mid Hubble-types, and many show transformations
between their rest-frame UV-optical morphologies. Galaxies at z=2.3 have
compact and irregular morphologies with no clearly evident Hubble-sequence
candidates. The mean galaxy size grows from z=2.3 to 1 by 40%, and the density
of galaxies larger than 3 kpc increases by 7 times. At z=1, the size-luminosity
distribution is broadly consistent with that of local galaxies, with passive
evolution. However, galaxies at z=2.3 are smaller than the large present-day
galaxies, and must continue to grow in size and stellar mass. We have measured
the galaxies' UV-optical ICD, which quantifies differences in morphology and
the relative amount of on-going star-formation. The mean and scatter in
galaxies' total colors and ICD increase from z=2.3 to 1. At z=1 many galaxies
with large ICD are spirals, with a few irregular systems. Few z=2.3 galaxies
have high ICD, and those that do are actively merging. We interpret this as
evidence for the presence of older and more diverse stellar populations at z=1
that are not generally present at z>2. We conclude that the star-formation
histories of galaxies at z>2 are dominated by discrete, recurrent bursts, which
quickly homogenize the galaxies' stellar content, and are possibly associated
with mergers. The increase in the stellar-population diversification by z<1.4
implies that merger-induced starbursts occur less frequently than at higher
redshifts, and more quiescent star-forming modes dominate. This transition
coincides with the emergence of Hubble-sequence galaxies. [Abridged]
