My wife and I have been using our echo Dot with an external speaker to play music while we are going to sleep. The problem is however that no matter what type of music we are playing there are sections that are quite loud and sections that have a very low volume level. And anybody found a way to have Alexa compress the volume levels to give a more consistent volume level.
Also, as we only have 10 steps in the volume level getting additional steps would also be helpful.
It seems your request has been misunderstood.
1st this is specifically an Amazon problem as the responsibility lies with the content delivery service.
What you are referring to is audio normalization across a given discrete channel. Most pay services offer this and you are also likely used to it listening to broadcast radio [where normalization is a standard]. This has absolutely nothing to do with the volume settings.
Additionally Amazon documents volume has having 10 levels which you can set by specifying level "Alexa volume level 3." Technically "level" is not the correct reference (volume is measured by sound pressure in a given 3-dimensional space) and there is no "fine-tuning" with regards to volume as only a single, "gross" control is available to users at this time (which is either a bug or oversight).
I have opened Ticket #012853375 with Amazon Technical Support regarding this and documented it at
https://www.amazonforum.com/forums/echo-alexa/echo-devices/2247-amazon-music-unlimited-no-normilization-via-echo and with Amazon Music
https://www.amazonforum.com/forums/digital-content/amazon-music/2365-does-the-amazon-music-unlimited-subscription-planIf you would like this fixed please, please call Amazon techincal support and open a ticket and reference my ticket #012853375 so Amazon knows it is affecting all customers (they like to pretend all problems are specific to your device and only your device which is very frustrating for customers but somewhat understandable from a tier-1-scripting perspective). If you're feeling particularly generous you could also post a supportive reply in the Music forum (link, above) so everyone knows you are seeing the same issue.