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To Change the Volume Level of a Clip:
Double click on the audio you are wanting to change, using the level slider located in the viewer, raise and lower the volume to the desired level.

OR, To Change the Volume Level on the Timeline
Click on the "Toggle Clip Overlays" button in the lower left corner of the timeline. This button will show the opacity level of the video and the volume level of the audio track. The opacity of the video track is represented with a black line, while the audio volume level is represented by a red line on the audio tracks.

To change the volume of the audio, simply select the arrow tool, and click and drag the red line lower or higher. To fade out the audio, use the pen tool and create keyframes by clicking on the volume line. Then adjust to the desired effect.

Another nice feature when working with audio in the timeline is the Show Audio Waveforms preference. Located near the "Toggle Clip Overlays" button, is a menu where you can show various timeline options. One of those options is the "Show Audio Waveforms." Once selected, the audio clips in the timelime show the waveform for each audio channel. This is helpful when fading the volume.

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∴Please note that this tutorial is designed for general editing on Final Cut Pro machines in ACD 403.