Here's the relevant setup parts: an audio interface (Native Instruments' Komplete Audio 6--will refer to as KA6 from here on) connected to my laptop and amplifier, and the 3.5mm line out of my synthesizer (Teenage Engineering's OP-1) connected to the main TRS/XLR combo sockets of the KA6. Here is a link to the KA6's specs in case it's needed for my questions:
http://www.native-instruments.com%2Fen%2Fproducts%2Fkomplete%2Faudio-interfaces%2Fkomplete-audio-6%2Fspecifications%2F
This is how sound manifests presently. Without a DAW (Logic) on, when my OP-1 is connected to my KA6, the only way to hear sound is by activating KA6's Monitoring option for the TRS/XLR combo sockets--it is mute otherwise. With Logic on, the only way to hear sound is if I turn on the Input Monitoring option in OP-1's track (the reddish-brown "I" below).

1) Is what I described how it should be working, any time you connect a non-MIDI instrument? Prior to actually setting this up, I had imagined, perhaps erroneously, that I would get sound, with and without a DAW open, without having to enable the direct monitoring option on my audio interface and the input monitoring option in Logic.
2) Input Monitoring is not another word for Direct Monitoring, is it? I assume it isn't based on this brief excerpt from a Logic support article: "Input monitoring always involves some latency."
3) The inputs I'm using on the KA6 have a toggle for LINE or INST. Gain needs to be turned up in order to hear the OP-1, otherwise the signal is too weak. The OP-1 is a tiny bit louder when I toggle KA6's INST input. What does that tell me about the OP-1?--ie, does that mean its signal level is INST or LINE level, should I use INST instead, does one afford better audio quality, etc.
4) I have the 2 Gain knobs and Monitor knob on the KA6 completely maxed, and the volume on the OP-1 maxed as well. The Volume Fader for the OP-1's track in Logic is untouched, left at its default value: 0. I use my amplifier's volume control to manage volume. Is this the right approach?
Thank you for any assistance.