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The best way to find out, is to use a second radio with headphones and no antenna. Turn the mic gain all the way down and then slowly turn it up while talking. This way, you can hear when it starts to sound scratchy and turn it down a bit. I would suspect that a stock type mic would be ok turned all the way up on both am and sideband. The exception to this is if the am modulation is turned up really high, and the mic gain is used to limit the modulation. The mic gain can also be used to adjust the power out on sideband. Handy if you want to use a small amp. The D104m6b can make some loud and clean audio, especially on sideband.

Chris