Unsure how to set levels to use tubes and power amp together

Hello to all...

I have a question regarding setting the power amp to work with my preamp:

I have a Wolze Line Level Tube Preamp -2-AX7s and 2-EF86 tubes, playing into a Parasound HCA-750a then to a pair of JBL L25 PRIMA speakers...

In a past forum: it was suggested that I could either play my CD unit directly thru the amp, using its volume controls ( it has independent R&L volume controls on the back of the unit) OR add a preamp, use the volume knob on the preamp, and set the volume controls on the back of the amp, according to how loud ( at what o’clock) I wanted to use the preamp volume.

My confusion relates to a minimal understanding that any electronic device ’amplifying’ a signal introduces distortion in the transmission, and therein lyes my confusion. Do I just set the amps volume control 1/2 way on the back (to minimize the distortion from that piece) and use the preamps volume control, OR do I set the amps volume controls full-on, and just use the preamp volume controls as best I can (even if it means minute adjustments never past about 8:30 on the preamp volume control).

So I’m questioning which piece of equipment’s distortion is better to take a advantage of... And what I should do.