Why is that query doing a heap scan and then a bitmap index scan?
It's not, exactly. EXPLAIN output shows the structure of the execution nodes, with the ones on the "higher" level (not indented as far) pulling rows from the nodes below them. So when the Bitmap Heap Scan node goes to pull its first row the Bitmap Index Scan runs to determine the set of rows to be used, and passes information on the first row to the heap scan. The index scan passes the index to determine which rows need to be read, and the heap scan actually reads them. The idea is that by reading the heap from beginning to end rather than in index order it will do less random access -- all matching rows from a given page will be read when that page is loaded, and enough pages may be read in order to use cheaper sequential access rather than seeking back and forth all over the disk.
Why is it examining 425 rows?
It's not. You ran EXPLAIN, which just shows you estimates and the chosen plan, it doesn't really examine the rows at all. That makes the value of EXPLAIN rather limited compared to running EXPLAIN ANALYZE, which actually runs the query and shows you the estimates and the actual numbers.
Why is the width of the operation 321?
Apparently that's the size, in bytes, of the tuples in mytable.
What is the cost of 12.04..1632.35 and 0.00..11.93 telling me?
The first number is the cost to return the first row from that node; the second number is the cost to return all of the rows for that node. Remember, these are estimates. The unit is an abstract cost unit. The absolute number means nothing; what matters in planning is which plan has the lowest cost. If you are using a cursor the first number matters; otherwise it is usually the second number. (I think it interpolates for a LIMIT clause.)
It is often necessary to adjust configurable cost factors, such as random_page_cost and cpu_tuple_cost, to accurately model the costs within your environment. Without such adjustments the comparative costs are likely to not match the corresponding run times, so a less-than-optimal plan might be chosen.