I read the RadioReference Wiki article on Whistler DSP ADC/DAC adjustments in 2016 when I bought my TRX-1 and could not make much sense of it. Not knowing its veracity, I fell back to Whistler's words in my TRX-1 manual that "DAC Gain sets output signal from CODEC, varying the audio level of decoded digital signals."
If ADC gain adjusts the level of analog input being fed to the analog-to-digital converter for proper encoding, then it makes sense that DAC gain adjusts the level of analog output from the digital-to-analog converter being fed to subsequent audio stages, and ultimately the speaker. That has been its sole perceived impact with my TRX-1.
If anyone with specific knowledge of Whistler's circuits can show that DAC gain actually operates in the digital sphere and could potentially hamper digital-to-analog conversion if set improperly, I'd be eager to learn more.
The "What is a DAC" article cited above discusses using outboard DAC devices for better high fidelity music quality. It is the difference between using a specialized, high quality device designed to perform a critical function, and performing that same function with a general purpose device like a computer or smartphone. But these devices encompass more than solely converting digital-to-analog, and may not be the most relevant example in determining how Whistler's DAC gain setting works.