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I.e. in a movie where sound effects are really loud, so you turn it down but now can't hear the dialog. Dynamic Range Compression makes the dialog more audible without the sound effects upsetting your neighbours.
https://en.wikipedia.org/wiki/Dynamic_range_compression
This is right!
Night mode is meant to decrease the volume of loud sounds, and increase the volume of quiet sounds, so if you're playing late at night, it won't be as jarring.