Colby has explained it well. I have a Norse 350 model. one rope goes inside of the winch. It is connected to the main clutch which powers the winch. The other rope goes to a lever outside which is connected to the pawl that provides the breaking. If you had a picture of the winch that would help.
Looking at the mechanical design it doesn't make sense. You nailed it when you said the rope will pull it vertical. I've been flipping it without the rope.
I'll occasionally release the brake by reaching behind a guard (on my model) to pull the pawl lever down, but usually only when the PTO is already off.
As you know, be careful of the drawstrings on your hood or jacket or other clothing threads that hang down if you're getting that close to a spinning PTO.