In Windows I have my microphone level set to 100%. When recording to Audacity though I notice that my levels are going into the red. Does this also mean that I am getting distortion on the microphone in general (such as in a VoIP)? Should I lower my microphone in Windows, or just in Audacity?
Lower your microphone level in Audacity if you're recording.
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It is probably best to keep the windows levels full because everything else has another level for itself and you can adjust them up or down there. Turning it down in windows might end up with one app being quiet and then having to turn it up and down in windows every time you want to switch apps.
As for skype and everything else to the normal thing and ask the person you are talking to if your levels are correct.
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Which windows are you using
Windows 10 Pro.
Right click the slider and change it to dB mode. Keep everything under 0 dB.
Wow, never knew that feature even existed. Great advice. Thank you, Ott.
I find asking most people about skype levels on a call unhelpful, as most people say it is fine unless sound is really bad or extremely quiet.
The skype test call is a great tool for checking sound levels and quality. You can hear any problems yourself when it plays back your voice recording, The pre-recorded message at the start is also helpful to check if your level is good relative to other skype callers. Also you can call her any time and as often as you need