This is an on-going question. Most of the time when it is asked some of the old hands would just say, "You wipe it down it's edge." or "Just use it to realign the edge". Mystics, they are!

I think most people use them however they can. I think that it is fairly common practice to use the flat wide part for general touch up and the narrower edge for dings. I think it was said that the narrower edge would put more force behind your push thus working out the ding a little better.
I hold the khuk in my lap with the edge away from me, the use the flat of the chakma and push it along the edge from cho to tip. Now, that is not the safest way as sometimes the chakma skates off the tip and your finger or thumb will hit the blade

However, i get the best results that way. Then i turn the blade over and repeat on the other side.
Also, keep in mind that most chakmas, unless they have changed, come pretty soft. Not butter soft, but a lot of the time they are not hard enough to work out the bad dings. Personally, I use a grooved butcher's steel, then a "worn out" butcher's steel (less toothy), then a file that I have reground into a smooth chakma as a last step. I end up with a good sharp edge that is sort of toothy, but fairly polished. If i want a razor blade, then i just take it to a leather strop and pretty soon the arm hairs start poppin'

Some of the experts will be along to explain it a lot better than I could
Jake