We develop a one-dimensional model for the unsteady fluid--structure interaction (FSI) between a soft-walled microchannel and viscous fluid flow within it. A beam equation, which accounts for both transverse bending rigidity and nonlinear axial tension, is coupled to a one-dimensional fluid model obtained from depth-averaging the two-dimensional incompressible Navier--Stokes equations across the channel height. Specifically, the Navier--Stokes equations are scaled in the viscous lubrication limit relevant to microfluidics. The resulting set of coupled nonlinear partial differential equations is solved numerically through a segregated approach employing fully-implicit time stepping. We explore both the static and dynamic FSI behavior of this example microchannel system by varying a reduced Reynolds number $Re$, which necessarily changes the Strouhal number $St$, while we keep the geometry and a modified dimensionless Youngs modulus $Sigma$ fixed. At steady state, an order-of-magnitude analysis (balancing argument) shows that the axially-averaged pressure in the flow, $langle Prangle$, exhibits two different scaling regimes, while the maximum deformation of the top wall of the channel, $H_{mathrm{max}}$, can fall into four different regimes, depending on the magnitudes of $Re$ and $Sigma$. These regimes are physically explained as resulting from the competition between the inertial and viscous forces in the fluid flow as well as the bending resistance and tension in the elastic wall. Finally, the linear stability of the steady inflated microchannel shape is assessed via a modal analysis, showing the existence of many highly oscillatory but stable modes, which further highlights the computational challenge of simulating unsteady FSIs.