Level 2- is more a way of looking at things and instantly comparing them.
The term "Level 2" is actually used as an adjective to describe any situation, because it easily conveys the additional level of intensity, beauty, drama, or awesomeness.
Everyone inherently knows "Level 1" is normal, basic, easy, common, or entry level.
So "Level 2" would just be additional to that.
Now, when you describe a brand new soft pillow as "Level 2," everyone automatically knows it is better normal.
Person 1: My new pillow is Level 2, I just got the best night's sleep.
Or when telling a story about a getting a speeding ticket.
Person 1: Yea, the cop went all Level 2, and gave me 3 tickets. It cost me $500.