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What is 'Unity'?

I keep seeing people talking about adjusting until they reach 'unity,' but I don't understand what this means. Can someone explain it, please?

In the context that I think you're asking about "unity gain" means that when using a pedal with a control for gain (or level, or volume etc) it means that you are adjusting that control such that the volume will be the same when the effect is bypassed as when it is on.

In some cases (I find this with tremolos, distortions and fuzzes) I actually like my pedal to be above unity so that the effect is slightly louder than my normal tone.

Hope that helps.
 
He's right, and one easy way to think about it is unity = 1:1, one level in, same level out.

Of course bear in mind that the level we hear is an average of the signal, so "unity" does not always describe a situation where the peaks hit the same level, or where the dynamic range is the same.