Strongly interacting quantum many-body systems arise in many areas of physics, but their complexity generally precludes exact solutions to their dynamics. We explored a strongly interacting two-level system formed by the clock states in (87)Sr as a laboratory for the study of quantum many-body effects. Our collective spin measurements reveal signatures of the development of many-body correlations during the dynamical evolution. We derived a many-body Hamiltonian that describes the experimental observation of atomic spin coherence decay, density-dependent frequency shifts, severely distorted lineshapes, and correlated spin noise. These investigations open the door to further explorations of quantum many-body effects and entanglement through use of highly coherent and precisely controlled optical lattice clocks.