about the audio interface mix button

my audio interface which is a steinberg cl1 has a master output control and a phones control knob for the headphones,when i have a mic connected to the interface with gain at the middle point and i turn the phones output all the way up and the mix button completely towards input i hear quite a lot of noise,when i turn the mix button towards DAW i get no noise even though the phones out is all the way up,can anybody enlighten me as to what this noise is from? is it the noise generated from the internal circuitry of the audio interface and by right it wouldn't go into my recordings right? any help is appreciated thanks ppl !
 
I operate Mbox mix knot that is similar to you. I alway turn full toward the DAW, as I care what is really recorded. Some people will adjust that button as they are sensitive to latency.
 
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