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Scarlett 8i6 Panel Gain vs Software Gain Controls

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Topic Scarlett 8i6 Panel Gain vs Software Gain Controls
There can be a conflict between the hardware vs software gain levels I hope someone can explain.
I can have the gain set using the rotary knobs on the front panel where they are solidly in the green. However, in the Focusrite Control Software, the hardware input and/or the output meters may be peaking into the orange (not red/clipping).

Are the software gain controls perhaps more sensitive by design?
Also, is peaking into the orange just a warning which can be tolerated or should it be avoided?
Thanks