The volume parameter in sounds.json sets the maximum distance from the player at which sounds can be heard. The distance in blocks is 16 * volume. Many vanilla sounds have volume values < 1, which means that those sounds should play only within a few blocks of the player. However, all sounds with volume < 1 can be heard up to 16 blocks away (unless they also have a max_distance set in sound_definitions.json).

Steps to reproduce

1. Import Sound range reduction test.mcworld. This world has test setups for piston, dropper, fire extinguishing, and block hitting sounds.
2. Import Sound Range Reduction Test.mcpack. This pack sets the volume for block click sounds to 0.5. This should affect the dropper activation sound.
3. Activate the pack on the world and open the world.
4. Turn up your device volume.
5. Stand on each lever and flip it.
6. Have a second player join the world.
7. Stand at various distances from the the fire and the netherrack while the other player extinguishes the fire and hits the netherrack.

Expected results

The piston, droppers, and fire extinguishing would be heard only from <= 8 blocks away because they have "volume" : 0.5, and the netherrack hits from <= 3.5 blocks away because it has "volume" : 0.22.

Observed results

All of these sounds can be heard from 16 blocks away.