You are correct, it is important to have your input level set correctly.
Most audio interfaces have an adjustable pad to control this. If your audio interface has a meter, keep it out of the red range. Some (most) interfaces might only have a 'clip' red led. Don't let that go on at all - digital isn't like analog - there won't be good distortion happening, just nastiness.
You can record with quite a weak signal - modern daws don't have a noise floor like old tape gear does, so don't push the input volume.
Hope this helps!