Head here to customize how sounds work:
Mute. Turn on this box to mute sounds; uncheck it to unmute. Note that it doesn’t apply when you play media.
Media. Tap here, and a slider appears that sets the volume for when you play music and videos.
Notification. Here’s where you control the volume of your notifications. There’s really no need for this setting, though, because you can do the same thing by using the volume along the top-right side of your NOOK.