Spin-wave dynamics were studied in an extended thin film of single-crystalline yttrium iron garnet using time-resolved scanning transmission x-ray microscopy. A combination of mechanical grinding and focused ion beam milling has been utilized to achieve a soft x-ray transparent thickness of the underlying bulk gadolinium gallium garnet substrate. Damon-Eshbach type spin waves down to about 100 nm wavelength have been directly imaged in real space for varying frequencies and external magnetic fields. The dispersion relation extracted from the experimental data agreed well with theoretical predictions. A significant influence of the ion milling process on the local magnetic properties was not detected.