I can't figure out what changing the audio refernce level actually "does".
Does it just move the little white dot on the meters and that's it?
Or does it boost the level or gain or something?
Thanks for the guidance.

Kelly

You're right. It moves the little white dot.

And the little white dot signifies what?

And the little white dot signifies what?
Reference headroom. On analog equipment, the equivalent of "0" on your VU meter.

Most post houses use either -12dB or -20dB digital for reference tone.
Most sound recordists I've worked with will use -12dB if they are all digital (digital Nagra or DAT), or -20dB if they are using analog gear (Nagra or Shure analog mixer.) Some sound recordist swear by -20dB, but I find that their dialog tends to float or peak in the -30dB range, which is risky for "soft voices."

That made sense, thanks once again Tim!