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For the life of me, I can’t figure this out.

I want to offer two shipping options (locations). Inside the USA and International (everywhere else). I want different rates for each.

I’ve set up the USA, but want to have a single rate schedule for the rest of the world. I can't believe that I'd have to enter every country individually?

Unfortunately, you're right that you would need to add every other country to a geo zone, so you can use it for an International zone. If that sounds like too much work, you might consider getting something like Multi Flat Rate Shipping, which includes an "Everywhere Else" zone that you can use to apply a rate to every location not within a geo zone.

For more complex setups, you could use Formula-Based Shipping instead, which includes more options for how to set up rates.