Hi Theodore,
The USB output from the ZEDi includes the analogue headroom from the mixer.
This means a 0dB level on the ZEDi meters equates to +4dBu on the line level (main) output and around -18dBFS coming into your computer/Audacity.
We have information about this here – https://support.allen-heath.com/hc/en-gb/articles/4403616287889-General-Qu-SQ-Levels-and-Metering-in-Qu-and-SQ – note that although it’s titled for Qu/SQ, most of this also applies to ZEDi.
There are a few places you could be introducing distortion, by pressing the headphone button on a channel you will route the signal to headphones and the meter, allowing you to check that you haven’t set your preamp gain too high. With no headphone buttons pressed, you will see the main LR mix on the meters instead and be able to check you are not sending to much combined level from channels.
Thanks,
Keith.