In this work we study the moduli space of instanton bundles on the flag twistor space $F:=F(0,1,2)$. We stratify them in terms of the minimal twist supporting global sections and we introduce the notion of (special) 't Hooft bundle on $F$. In particular we prove that there exist $\mu$-stable 't Hooft bundles for each admissible charge $k$. We completely describe the geometric structure of the moduli space of (special) 't Hooft bundles for arbitrary charge $k$. Along the way to reach these goals, we describe the possible structures of multiple curves supported on some rational curves in $F$ as well as the moduli space of del Pezzo surfaces realized as hyperplane sections of $F$. Finally we investigate the splitting behaviour of 't Hooft bundles when restricted to conics.