At the moment, I have dialogue popping up and progressing automatically. So one character speaks, then maybe six seconds later the dialogue changes to another character's line. I also have it so you can skip through each one by hitting enter or the mouse button.
But I'm wondering if it should all progress manually. so a line of dialogue stays open indefinitely until the player clicks to progress forward.
There are certain times when the dialogue pops up during battle. I guess keeping that automated would be important. Just in areas where there is a gap in the action would require user input.