The idea of environment unfortunately tends to mean different things to different people and organizations.
To some, it's simply creating multiple copies of some infrastructure -- possibly only temporary, or possibly long-lived -- to allow for testing and experimentation in one without affecting another (probably production) environment.
For others, it's a first-class construct in a deployment architecture, with the environment serving as a container into which other applications and infrastructure are deployed. In this case, there are often multiple separate Terraform configurations that each have a set of resources in each environment, sharing data to create a larger system from smaller parts.
Terraform has a feature called State Environments that serves the first of these use-cases by allowing multiple named states to exist concurrently for a given configuration, and allowing the user to switch between them using the terraform env commands to focus change operations on a particular state.
The State Environments feature alone is not sufficient for the second use-case, since it only deals with multiple states in a single configuration. However, it can be used in conjunction with other Terraform features, making use of the ${terraform.env} interpolation value to deal with differences, to allow multiple state environments within a single configuration to interact with a corresponding set of state environments within another configuration.
One "at scale" approach (relatively-speaking) is described in my series of articles Terraform Environment+Application Pattern, which describes a generalization of a successful deployment architecture with many separate applications deployed together to form an environment.
In that pattern, the environments themselves (which serve as the "container" for applications, as described above) are each created with a separate Terraform configuration, allowing each to differ in the details of how it is configured, but they each expose data in a standard way to allow multiple applications -- each using the State Environments feature -- to be deployed once for each environment using the same configuration.
This compromise leads to some duplication between the environment configurations -- which can be mitgated by using Terraform modules to share patterns between them -- but these then serve as a foundation to allow other configurations to be generalized and deployed multiple times without such duplication.
