You're making a heel flap. Amy's Working the Heel of a Sock
video might prove helpful to you.
Yes, you will only be working the stitches on one needle right now and turning at the end of each row. In the video, Amy has already done that. You can see what it looks like.
I think the video could answer your questions much better than I can. If you need more help, be sure to ask. Someone will be able to give you clear answers.