How does the tension between outward conformity and inward questioning contribute to the meaning of Billy Budd?

This question could be answered in a number of ways.  One
approach you might want to consider is looking at how each main character struggles with
conforming to a sense of outward expectations versus listening to what seems right
inwardly.  To do this, consider the character's personality traits and compare them to
his actions throughout the story.  Does he act on his conscience or on a sense of
outward expectation?  What is the ultimate result of his
actions?

One of the more obvious examples is the character
of Captain Vere.  Vere is described as a man of natural intelligence, a keen sense of
duty, and fair yet high expectations.  As a result, he is well respected, maintains a
sense of order on his ship, and is trusted in decision
making.

When the beloved "handsome sailor," Billy Budd,
strikes out in anger against John Claggart and kills him, Vere is, for perhaps the first
time, faced with a morally difficult decision.  He must decide between convicting Billy
of murder and perceived plans of mutiny, or going with his gut belief that Billy is
truly innocent.

In the end, Billy is convicted and hung,
due in large part, to Vere's convincing the court not to let their love of Billy affect
their view of the factual events of the incident.  The events after the hanging are
briefly described, but basically, we know that the crew erects a monument to Billy Budd,
Captain Vere dies shortly afterward in a battle with a French ship, and the remaining
men each take pieces of the monument and hold them up in a gesture of honor to Billy
Budd.

As one of Melville's less significant works,
Billy Budd is perhaps one of his most highly debated stories.  At
the end of the novel, the reader is very clearly presented with the question: Did
Captain Vere make the correct decision?  (Or, was justice truly served?)  This question
has been considered by many to be the central idea of the story and
the fact that it is left ambiguous allows each reader to come to a personal conclusion. 
I encourage you to look at the other main characters in the same way as above and draw
this conclusion for yourself.  Good luck.