It does, very well even. I'd say on average its exploration is more dangerous than that of Dark Souls, but the bosses are easier. That's also why the end-game sucks so much - there's nowhere left to explore.
Really? That's surprising. Is it an open-ended sort of exploration like in DS1 where you get many possible paths, including being able to access endgame areas early, or is it like DS3, with relatively big areas you nonetheless have to progress through in a mostly linear fashion?
Don't be fooled, I bought this game off of pepe's recommendation and I was horribly disappointed. It's utter shit. All levels look the same, all enemies look the same, the combat is clunky and stupid, there's no variation to anything, no reason to explore because all items are meaningless anyway and as far as I remember it's 100% linear, the art is completely uninspired and it just plain looks ugly and plays ugly. It's a terrible game, avoid it at all costs.
You'd think pepe would know what's up, but you'd be wrong. But based on the other two guys who recommended the game on this very page you can tell it's probably not worth bothering.
The game isn't necessarily linear, but it does chokepoint in a few spots. You can access Lothric Castle early but you're gated at the Archives. There's a branch at The Road of Sacrifices which goes to Cathedral of the Deep and Farron's Keep, and from the Abyss Watchers the Smouldering Lake is completely optional. Irithyl Valley branches off towards the Profaned Capital and Anor Londo, but those are both dead ends just like Cathedral of the Deep.
I think the real problem is that the areas themselves just aren't as big as they were in DS1, so it doesn't feel like there's as much exploration going on. There's also no intersectionality between the levels like you had a few times in Dark Souls 1. Paths branch off and you can do most of them in any order, but all the branches end up at dead ends, so there's one main corridor of progression along which the action flows.
The real problem isn't so much the actual linearity of the world, which is by far the most linear of all the Souls games, but rather that it feels designed to be experienced linearly. The only real sequence break is gated behind a boss with high defenses who will also oneshot you (you can tank a hit from Manus in DS1 at SL1, but Dancer oneshot my 15 Vigor, Embered character with multiple moves), and the area design simply doesn't require any approach other than exploring thoroughly and never coming back - there are no high-level optional enemies guarding stuff, no locked doors, no paths with specific item requirements (the lava rooms in the Demon Ruins are the only ones that come to mind, and you get those by stacking normal fire resist rather than needing a special item), in essence, no reason to ever come back to an area after going through it once.
Not to bring up DS1, which was full of this kind of stuff, but even in DS2, Forest of Fallen Giants had one locked door the key to which was found in Iron Keep, a locked gate which led to endgame stuff, and more optional endgame stuff with the Giant Memories. You could go to the Shaded Woods crossroads and find two closed paths leading to various endgame stages, Lost Bastille had a variety of locked doors and optional paths, and the game in general tried to make this approach somewhat systemic with the introduction of Fragrant Branches and Pharros Lockstones. And even though you couldn't go to endgame areas immediately, you could still find stuff above your intended character power relatively easily - like trying to do the Iron Keep route first or fighting Gargoyles immediately after Ruin Sentinels.
None of this exists in DS3. Every area is basically self-contained and if you can get there, you can also kill everything within. It's rather disappointing, because it really wasn't hard to, say, put an Outrider Knight guarding some stuff in the High Wall of Lothric somewhere (instead of guarding the gate to Road of Sacrifice, which makes for a rather jarring difficulty spike). They simply chose not to for whatever reason - the idea of being able to get in over your head, like the idea of being able to get lost, was just streamlined out of the game, it seems to me.