Specifically, the light should turn off after X minutes of _continuous_ use. If the light sensor value falls below your specified target level, the LED turns on, and it stays on continuously for the entire timeout period specified in the preferences panel, the light will be shut off.

So, the example I used: I go to the preferences panel, check the "Enable Torch Timer" box, and then set the "Time Torch stays lit" to 1. Then, I exit the preferences panel, switch to the Light Sensor panel, check the "Start torch at specified sensor value" box, and set the "Minimum Sensor Value" to some number that is larger than what the ambient light sensor is reporting. The LED should then turn on. Now, if I wait for one minute, the LED should turn itself off.

(I should note that If the ambient light level should go back above the specified target level, and then drop down again, the LED will turn itself back on...)