Heat 1 teaspoon olive oil in a skillet over medium heat and add the thinly sliced onion. Cook for 3 to 4 minutes until the onion softens and turns lightly golden.

Season the trimmed chicken thighs with salt and pepper on both sides, then add them to the skillet. Cover the pan for 2 to 3 minutes to help the thighs retain moisture.

Remove the lid and continue cooking the chicken until the pieces are browned and an instant-read thermometer inserted into the thickest part reads 165°F, about 10 minutes total from when the chicken hit the pan.

Shred the chicken directly in the skillet using two forks or tongs to pull the meat apart into bite-sized pieces.

Stir in 1/3 cup low-carb BBQ sauce and let the shredded chicken cook in the sauce for 1 to 2 minutes so the sauce warms and coats the meat.

Sprinkle 1/2 cup shredded cheese over the sauced chicken and cover the skillet for 1 to 2 minutes until the cheese melts.