Something has been troubling me. I speak not only as a member of the Twin Peaks Gazette messageboard, but also as a human being:

Why did Hank beat Leo up? Was he annoyed that Leo had become the Most Baddass man In Town while he was stuck in jail?

It confuses me. I can't see why he'd be so annoyed at Leo.

I'm pretty sure I havent seen this topic discussed on here before... 

In episode 4, Ben reprimands Leo for doing business with the Renault brothers ("glue sniffing squish-heads") before they discuss the arson.

In episode 5, Hank tell Leo he was to "mind the store, not open his own franchise" before he kicks his ass. By the time Ben asks Hank to follow Cooper, we know he works for Ben doing shady stuff. Leo filled in while he was in prison, so Hank was reasserting his position.

 There was also that threesome Leo had with Shelley & Norma... (he didn't even take pictures!!!)

That Leo... So impulsive...