Can you saturate levels in digital

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For the odd occasion I need to record a vinyl onto a CD for use in my car or ipod, I use a cheapo Phillips CDR. I have just started using a Hagerman Piccolo head amp instead of my usual AT SUT and the output must be lower into my CDR 'cos my recordings would seem to be at a lower level. This has started me thinking how important it is not to saturate levels so as not to clip and distort. Is it comparable to the old days with cassettes ? Would I be better off not allowing the led vu meters ever to go into the red section ? Are there any accepted norms or suck it and see ?
 
IRC, it's best not to let things go into the red. Digital distortion sounds like "Thhhhrrrruuuuuuuuuuup!"
 

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