As long as you play on low volume it doesn't matter.
It is however best to align the output voltage to the amplifier and then turn up the volume settings on the WiiM. A high volume (60-80) makes a better dynamic range.
"A high volume (60-80) makes a better dynamic range."
I don't think that this holds true. I have not seen components in the WiM Pro Plus analog output stage that would switch the gain of this stage (please correct me if I'm wrong). Thus this "output voltage setting" will very likely use the digital volume control in the DAC chip and will reduce the dynamic range of the DAC.
When I find the time, i will measure the S/N for different "output level" settings.
The WiiM volume control spans 50dB only. When vol=100% yields 110dB SPL, the 1% volume setting will still result in 60dB SPL - too much for background listening.
The "volume limit" setting seems to be a Pre-gain upstream in the digital domain, just like the normal volume control and it applies to all outputs.
Analog Output:
When using the analog output of the WiiM, using the "output level setting" allows to get the output level at vol=100% down. The limiter in the digital path will make sure this level is not exceeded.
-> Compare traces 5 and 7 in
https://forum.wiimhome.com/threads/does-using-eq-degrade-sound-quality-in-wiim-pro.6534/post-149606
In case you have heavy boost EQs in equalizer, these will get limited to the output level you have set. I would thus not recommend this if you just want to "shift" the volume control range to lower listening levels as the limiter may step in when you approach vol=100% (trace 5).
I would rather use the "volume limit" setting (trace 7) that yields the same volume without engaging the limiter.
Digital Output:
When using the digital output, the "volume limit" setting is a very nice feature. This basically is a Pre-gain for the EQ (to make sure the limiter does not engage at volume near 100% when boost settings in the EQ are used).
I do use it to reduce the output level when listening at low SPL (see example above).
The "volume limit" acts in the digital path and covers all outputs, analog as well as digital.
For details see:
https://forum.wiimhome.com/threads/does-using-eq-degrade-sound-quality-in-wiim-pro.6534/post-149817
In case you use a volume control downstream (external DAC or integrated amplifier) I would set the "volume limit" (=pre-gain) to almost the same attenuation as the largest boost in the EQ. This will make sure the limiter does not engage and will provide some headroom for ISPs in case you're close to vol=100%