I was going through some of the options on my Yamaha RX-V2200 and I found Dynamic Range. So, my question is - What is it and what should it be set to?

HP D-Range
SP D-Range

Settings: Max - Standard - Min

Normally, this settings is only for Dolby Digital. It serves to reduce loud peeks so you can listen at night.

So, what should it be set to then?

I've gone through the pdf manual and it doesn't say anything at all about it.

Max - watching feature film
Std - general use
Min - listening to sources at extremely low levels

Max is what the movie is intended for. I personally NEVER set it to any other value. I actually prefer to abstain watching noisy movies late instead of having to reduce dynamic.

Yes, leave it at Max, which essentially disables any compression of the source's dynamic range.