Kkat,
Bypass mode is using the preamp purely as a pass thru for your source to your amp... just using the volume pot. not the gain section of your preamp. You dont get the same volume levels as when the preamp is active. It is supposed to be a more sonically pure way to listen.. I personally like the sonics of the pro 10 without using the bypass mode imo. The external power supply is rock solid and it is a good thought on B and Ks part to isolate it from the rest of the electronics.
It is just one of those nice pieces...
Best of luck,
Joe