I fixed the problem in mine by making sure my icon theme inherited from the 
Human Icon theme in it's index.theme file.
Apparently notify-osd uses it's own icon naming scheme that only Human has.

-- 
notify doesn't show volume changes
https://bugs.launchpad.net/bugs/331383
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OSD Developers, which is subscribed to Notify OSD.

Status in Canonical's Notification Display Agent: Confirmed

Bug description:
Apparently notify-osd takes over compiz's volume osd, but the problem is that 
it doesn't work. When I used the volume control buttons on my keyboard, all I 
see is a empty black box in the top-left corner of the screen. I'm currently 
unable to visually tell what the volume is.

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