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I haven't finished a full playthrough yet, but I want to make sure I'm actually understanding the premise first. So, it seems like I continue reliving my life until I solve the puzzle and figure out how to make the world not end. (Haven't done this yet; I've solved some things, but not everything.) But I'm assuming the game doesn't end there, and at that point you figure out how you want your actual life to end in a somewhat more free choice style rather than finding the correct answers? Am I understanding that correctly?

Yes, exactly. Once you solve the “puzzle” you begin to have the option to “stay” at the end of each life— then it’s up to you to decide which life you want to keep.