If you change the volume using the volume slider on the bottom right of your Desktop, does the volume change correctly in graduated steps?
If it does, then the actions associated to the function keys on your keyboard are not controlled by Windows, the actions are controlled by the PC manufacturer.
Try pressing Fn + a function key to test of that changes the volume correctly.
If not, boot your system into BIOS and look for a setting to switch between Function Key and Media/Action Keys.
If that does not resolve the problem, what is the make (Dell, Asus, Lenovo... etc.) of your laptop?