In concept, Twisted Metal: Black is a demolition derby that permits the usage of ballistic projectiles. Players choose a vehicle and an arena—or a series of arenas in the story mode—to engage in battle with opposing drivers. A variety of weapons and upgrades are obtainable by pick-ups scattered throughout the stage. The objective of the game is to be the last one standing.
The basis of the plot follows the same structure as in all the previous games: Calypso runs a car-based contest called Twisted Metal (though in the game the contest is never called that), in which the various characters compete risking their lives to claim the tournament's prize - any single wish they desire, no matter the difficulty, rarity or even reality of such wish. Although Calypso is indeed malevolent, characters who have malevolent wishes (which make most of the cast) have their wishes granted without him tricking them on the wishes, while those seeking more noble ends (such as Outlaw's driver Agent Stone) find that Calypso usually has the last laugh.
In a somewhat different take from previous games, each character has their own story, which they narrate from their own point of view. Each of them starts with them being visited by Calypso, who knows what they desire and offers them in his contest. More of the characters' background is revealed in their midpoint cutscene, presented as a dream experienced when they briefly pass out after the sub-boss Minion is defeated. The characters' ending movie showing their wish being granted is presented after defeating the final boss Warhawk.
The game instead takes place within a single city known as "Midtown", with most competitors coming from the city's mental asylum, "Blackfield".
Twisted Metal: Black has a diverse cast made up from both new and returning characters, some of which have changed drastically from their previous appearances. There are a total of fifteen selectable characters, in which ten of them are selectable from the very beginning and the other five must be found and unlocked.