Bad partition. Hold down Command + Option + R to access Internet Recovery. Format the drive (sorry you'll lose your Bootcamp) and repartition it.
Some of the recovery partition files live on the OS X partition which is why it is usually hidden in Disk Utility. A corrupt partition would be the cause of your reboot upon clicking continue.
If this does not fix the issue then it would be a hard drive issue, regardless if Boot Camp is working or not. Could be a bad sector not used by Boot Camp.