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Gain is the amount of "volume" you have available. The gain is there so that you can adjust it in such a way that the volume is at the level you want when it's set on max. Just so that you don't have to worry about where you had your volume set to before. So you can change the volume, and pump it back to max, knowing that's the volume you want. I hope I'm not confusing? Hrm I don't think that made much sense. OK time for math.
Let's represent loudness by a range from 1 to 10, 10 being loudest and 1 being softest.
Channel 1 has a track playing at volume 7. The volume level is set to 100%. Channel 2 has a track playing at volume 5. The volume level is set to 100%. Hmm how to make channel 2 louder?? Set the gain higher on channel 2 SUCH that it's at volume 7 at 100%, like channel 1.
Conversely, if channel 2 is at volume 9 and 100%, lower the gain so that it's volume 7 at 100%.
Another advantage of this is that you can screw around with the volume faders, knowing confidently that when you slam them back to 100% you have volume 7, which is what you want (just as an example).
Hope that helps.
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