The Monitor volume feature is a simple, local digital monitor. The latency you hear from it is the amount introduced by your audio interface and drivers (only), without any networking involved. This also makes it a great way to test, troubleshoot, and optimize your setup. Just turn the studio output volume all the way down, and your monitor volume slider up (be careful to use headphones or you will create feedback!)
If the latency you hear is distracting, it’s time to look for a better audio interface. All modern interfaces should generate a nearly imperceptible amount (about 5ms or less, with some like UA’s Apollo boasting only about 1ms).
Here are a few great audio interfaces that I have tested and reviewed: