Stock front forks have basically no compression damping and rebound damping is controlled by wear and oil viscosity. Too thick oil will make the front end pump down over bumps, eventually bottoming out on a washboard surface. The difference in compression damping - ie feeling stuff like expansion joints - is slight.
Too thin oil and the front end will pogo up and down a bit.
Oil volume does a difference because the air above the oil acts as a spring when the fork is compressed - the air is also compressed, pushing back outward. More oil increases the airspring effect, but too much fluid will pop the seal out on a big bump because the internal pressure gets too high... especially if you have so much oil there's no airspace left at or before full fork compression.