"Level control volume" use system output (WASAPI)


I don’t understand what does that mean exacly.

My device is DAC USB ASIO and I usually use the “DSP volume” because my DAC hasn’t remote.

What happen exacly if I choose: use system output (WASAPI)?

The device is ASIO, how it can be WASAPI? The “system output” means the Windows mixer? In that way I will not lose the ASIO qualities to bypass it?