Hi Agencal,
I will offer you my understanding. You will loose some of what you call resolution any time your volume control is not at 100, but that is not necessarily as bad as you might think it is.
When you turn the volume down from 100, you are loosing the quietest parts of the music. This is not a big deal as long as your gains are set up well because most home listening environments have at least 40db of ambient noise. So these quiet parts of the music would be lost anyway in the ambient noise of the room even if they were not lost to digital attenuation. For example, my volume control is often as low as 60 when I just have some background music on. The music is only about 20db above the room noise, so it is OK that my DAC’s dynamic range has been reduced to about 60db.
When you turn the volume up past 100, this could be either OK or bad depending on the digital recording being played. If the recording is actually using the full dynamic range available in the digital file, then you would be loosing the loudest parts of the music. This is what I understand Dustin called DAC clipping. However, you are probably not going to want to turn the volume up past 100 if your gains are set up well and the recording is so loud. A handheld SPL meter is useful for verifying that a particular recording is quieter than normal. Turning the volume up past 100 when playing a quiet recording is probably OK. The parts of the recording that could contain loud music are empty, so they can be lost with no consequences.
So what do I mean by well set up gains. You want the least amount of gain that allows you to play one of your quieter recordings as loud as you want while staying at or just below 100 on the volume control. For me, this results in a usable range of 60-100 while always having a dynamic range that extends below the noise floor of my listening room. A hand held SPL meter is very useful for set up as well as keeping volumes hearing safe while listening.
I personally don’t like the idea of turning the volume up past 100 and I wish this could be disabled in the DAC menus.