So is this like AHS where each season is a different story or this 2nd season is the continuation of the last one?
A mix of both!
Originally, it was planned that each season will have a different location and a different "horror" (which, apparently, is still in tact), but there would be only 4-5 survivors of the previous season, and those 4-5 survivors would move on.
Except that bastard Ryan got **** twisted. 8 main cast members survived, only 5 are moving on (plus one non-main cast member).
However, it also seems that the season will act as a continuation-- it's set completely differently, and obviously the transition is going to be convoluted as Hell, but it does act as a mix of both an anthology and a regular continuation.