Yes, the interlocks are used to start a step.
You have basically a network of ladder logic or FBD that is attached to the left of the step. When all of the conditions are met, that step activates. When it activates, it performs the "actions" that you program to the right of the step.
How I worked with a simple program was used "INIT_SQ" in network for the interlock on the first step. In the block that calls the S7-Graph block, I tied a normally open contact input connected to a pushbutton with address, say I0.0, to the init_SQ input. That way when I press the pushbutton, the INIT_SQ input turns true, turning on the sequencer. This also turned the contact on the interlock true. If INIT_SQ is the only input on the first step, you can perform some actions. I try to make sure that the last action sets a bit that is monitored in the interlock network for the next step. This way, when that action is performed, the next step becomes active.
This may not be the best or ideal way. I just had to fumble through it like you're having to do.