The key to remember is that the Threshold is the "starting point" for all target signals. If a threshold is too low (as in silent search), a small or deep target might not generate enough audio response to get your attention. And if it is too high, a target may not create enough audio response to overcome the sound of the Threshold. I set my threshold with my speaker volume control at Max. Once I get my Threshold at a level that is just barely audible, I'll plug in the headphones, set that detector volume to Max, and adjust the individual headphone volume controls so the Threshold is still just barely audible, while making any adjustments for a difference in hearing between the right and left ear.
I always hunt with headphones not only to hear the targets. But to also block out any ambient noise. By blocking out the noise of traffic, wind etc, I am able to run with less volume in the headphones and still feel comfortable that I am not missing the more faint audio signals.
Some advice I would give concerning having too high of Threshold........ a year or so ago my brother and I were both hunting a field with our X-70's. I was fortunate to find an old silver 3 cent piece. If you are familiar with that coin, you know how small it is. Anyway, I took it over and showed it to my brother. He asked what the TID had been and I told him a solid 24. I tossed it on the ground for him to scan over it, and he could not detect it unless the coil was right on top of it. We were both using the same detector model, both were using a small DD coil and both had the same ground balance setting. The only difference was the higher level he had his Threshold set. Mine was barely audible (to me) at 4. He had his set up to 12, for some reason. Once he lowered his Threshold to a level that was just barely audible to him (ended up with a 4 or 5), he could detect the silver 3-cent piece with no problem.
In my opinion, the Threshold, Volume and Sensitivity all work hand in hand. Finding a level for each that allows the target signals to be heard, without creating a situation that creates false signals, masks the good targets or neglects those small/deep targets should be our objective. JHMO HH Randy