When you went from Wide channel to Narrow, that changes how many KHz the radio is expecting for full channel signal deviation that it receives and, it also changes how wide the signal is that you transmit (more on tx later). So, if the radio is set to operate wide, and then it is switched to narrow, the freq. swing (deviation) of the signal will give a larger audio output for a given deviation because now the radio is set so that the full channel deviation is less freq. shift than it was before when the channel width was larger. If both the radio and the received signal are using narrow modulation then it will sound "correct" for volume. If you radio is on wide, but the other radio is transmitting with narrow deviation, the audio will be low, because full modulation of the narrow transmitted signal is only about 1/2 of what the radio is set for to generate full loudness audio.
If the your radio is on Narrow and is receiving a Wide signal then the deviation can swing outside the receive bandwidth your radio is set for. This will cause loud signals to distort as they swing outside of the Rx pass band. On transmit when you are set to narrow channels your audio is only deviating your signal at full audio for a narrow channel which is about 1/2 what it would be if you were transmitting the same audio using a wide channel setting.
I hope that helps explain it, I don't know that this is a very clear way of saying what I am trying to get across.