I'm wondering if there is a simple way (I'm guessing through the menu system) to simply display onscreen text along the way. It would be ideal to have it go away once an arrow prompt has moved you to the next cutscene. It's worth noting that pretty much all interaction is just a long series of cutscrenes.
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But for full control - yes, Menus and Labels are the way to go. You can show/hide individual labels by using the Menu: Change state Action.
MenuLabel labelElement = (MenuLabel) PlayerMenus.GetElementWithName ("The menu name", "The label name");
labelElement.label = "My new text";