QUOTE
When the volume on the amp is low, I have noticed some feedback.
I assume this is noise, rather than feedback.*
The challenge is to maximize the
signal-to-noise ratio.There will always be
some noise coming out of the soundcard. When you reduce the volume with software, the output-noise remains constant and your signal-to-noise ratio is degraded. If you then amplify the signal (with your headphone amp) you will
also amplify the noise. If you reduce the volume at the headphone amp, you will
reduce the signal and the soundcard-noise together. The headphone amplifier will generate
some noise internally too. Some or all of this noise may not be reduced when you turn-down the amplifier's volume control.
There will probably be some noise leaked-into the soundcard
before the volume control stage, and that part of noise
will be reduced when you reduce the soundcard-volume with software.
Since you can't control the noise generated by the electronics, the idea is to
keep a strong signal through the whole chain... as strong as possible without clipping until the last stage. Since it's impractical (and bad design for other reasons) to put a high-power potentiometer at the speaker-output, volume control is usually done at the preamp output (the last practical point).
QUOTE
I was under the impression that lower preamp gain equated to greater dynamic range. Is that not necessarily true?
Well... it could reduce the noise
contributed by the preamp and the noise fed
into the preamp. In general, a high gain amplifier is noisier than an equivalent low-gain amplifier. And, if you turn-up a microphone preamp, you can usually hear some hiss. But, that doesn't tell the whole story because you usually
need the gain! (You
do want to avoid reducing gain at one stage, and then adding-back gain at another.)
If you set the gain at zero, you've got zero dynamic range! The high-end of the dynamic range is set by the signal level (or the clipping/distortion limit). The low-end is limited by noise.
* Soundcard noise can be quite different from "traditional" hiss & hum. Inside a computer there are lots of oscillators & signals that can leak into the soundcard, or if you amplify a very-low level
digital signal, you may notice quantization noise.
Feedback is the loud squeal (oscillation) you hear when a singer gets the mic too close to the speaker. The sound "feeds-back" into the microphone from the speaker. Feedback is almost always full-power, because the sound gets amplified each time it passes through the "loop" until the power amp clips. (If there is a delay, you will get an echo.) It is possible to get feedback inside your soundcard.... I forget exactly how at the moment.... but this is also a
full-power oscillation.