Using digital volume exclusively for volume control will result in a significant reduction in detail and imaging. It's okay to do about -9dB, but not more. This requires that the DAC have some kind of gain control or a good volume of its own.
There are five types of volume control:
1) Digital volume control - reduces resolution as the volume is decreased
2) resistive attenuation - delivers detail, but kills dynamics with most amps
3) active gain control - adds distortion, noise and compression, but has good drive, so dynamics are good.
4) Transformer scaling attenuation - with strong DAC outputs and good transformer linestages, like Music First TVC, this is more transparent and preserves the dynamics. Easy to match to amps
5) D/A reference voltage control - This volume adds no noise, distortion or compression, in fact it actually improves S/N ratio as the volume is decreased. No loss of resolution. The best of all possible options.
Steve N.
Empirical Audio