The faster you go, the louder the surrounding noises get. Air flowing around the car, tires on the road, etc. They are hard to notice because they build slowly, as your speed increases. Since the radio has a fixed output, (the volume knob), it gets drowned out by the road noises as you drive faster. And when you adjust for this, the radio is suddenly too loud when you stop and those noises go away. Speed compensated volume tries to adjust the radio automatically so it isn't too loud when you slow down, or too soft at higher speeds. If it's doing it's job right, you'll never notice it working.
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