Were there songs they sang in the fields? Did many peasants know how to play musical instruments? How did they find the time to practice? How much ecclesiastical music would they understand? Did they have special songs for weddings/funerals?
Caveat: my information is a bit late, from the fifteenth century, but may be useful since I suspect it is relevant for the 12th as well.
I dont know if you count bells as music, but bell ringing would have been a constant sound during their life. Every peasant would have been able to hear the bell of his village and there are records of complaints when the bell could not be heard in the fields. The bells of churches, abbeys, and monasteries would ring regularly. But on special occasions like the signing of a peace treaty or the election of a new pope, they would ring for days, all through the night continuously.
Regarding songs and musical instuments, the processions of the nobility were always preceded by great ceremony, often using trumpets and other brass instruments. And famous itinerant preachers would be greeted by entire towns coming out to greet the preacher with songs and chants and music, all processing multiple times around the town. Music appears to be a big part of life, part of general emotional feeling, as well as a ritualised part of corporate life.
Source: The Waning of the Middle Ages, by J. Huizinga
In Paris the music scene was dominated by the Notre Dame school (Leonin/Perotin). The written music was Latin sung Organum, basically a Gregorian chant with a second voice paralleling the chant at a different interval. There would be no instruments accompanying that. In fact, there is not a ton known about what inatruments were used. There were percussion and some shawms from the middle east, but most of the instruments you know in the modern europe were a couple centuries away.
Related question: in places like Brittany, there are dances and songs associated with all sorts of work, such as the salt gatherers in Guerande. When where these dances and songs first put together?