Yes. "Playing to the last balcony" is six inches in front of you. You can actually do theatrical expression, but you have to couple it with microphone distance management so the volume doesn't go nuts.I will add that stage performance and narrating are VERY different beasts.
It's a very different beast.
Are you wearing headphones? Does your microphone support that? I can't tell from the microphone manual, but it doesn't seem so.That can go a long way to manage volume variations. It has to happen at the microphone or mixer. You can't listen to the computer because of processing delays and echoes.
That's one reason all recordists you see are wearing headphones.

Most processes produce distortion like that if overdone. That's my phrase "nobody is going to pay to listen to a bad cellphone."I find it to get artifacts, or sounding 'mechanical'.
And that's where recording low volume can cause problems. You start competing directly with the natural system noises (fffffff).
The Leveler effect got moved. DId you have any trouble finding it?
Effect > Distortion > Leveler.
It was on the chopping block but was saved by those of us who found multiple passes valuable for producing "Air Traffic Controller" or "Taxi Radio" voice.
Koz