Your game will continue directly from the moment you left it, and if you want to suspend the cycle again, your progress will be captured from that new point onwards.
The structure of the game remains unchanged, so this functionality is not a traditional mid-game “Save Game” option: by suspending the cycle, Returnal will simply create a single use suspend point, and once you resume playing the suspend point is deleted and cannot be used again. One of the main features of this update is the Suspend Cycle functionality, which will allow you to pause your cycle to be continued later, letting you exit the game and turn off your console without losing your progress in that session.