This value is also used to classify various game content relative to the intended user group, see "quests" below.
Grey 9 or more levels below Green 6-8 levels below Turquoise 3-5 levels below Blue 1-2 levels below White Same level as yourself Yellow 1-2 levels above Orange 3-4 levels above Red 5-7 levels above Purple 8 levels above
Characters earn level through gameplay, as they grow. A new character begins at level 1 but has "levelled" to at least 5 before the Starter Area is completed. The current maximum level is 105.
As the level is increased various Character Stats will improve, such as inherent resistance and health. In general, each level grants higher Morale and Power, and many levels unlock new Skills for the character to purchase at a Class Trainer. Many levels also unlock slots for Traits.
Some locations and game-content, such as certain deeds, have requirements on minimum or maximum level.
Quests are categorized by level. In this case their level indicate which characters they are best suited for. However, a character may successfully complete a quest a couple of levels higher than his own, but that is not the norm. The opposite is also true, some quests below a character's current level are impossible to complete; this should not happen but since it does those quests are either assigned the wrong levels or the creatures are more powerful than intended ... Bring a Fellowship and move on.
Creatures (including Mobs) have levels which indicate their toughness against a character, similar as for quests. Difficulty indicators display the relative toughness against a character's level. A too large 'mismatch' is either fatal in the upper end, or it yields neither XP nor challenge in the lower end.
Within an Area the creatures and mobs are usually contained within a narrow level range, such as 22 - 26, but the width of the range may vary from 1 to 10 (the latter is rare, if ever) but is often 3 to 5 notches wide. Some areas may also have quests and creatures way outside the main levels, then always contained in certain, narrow locations (e.g. Ost Alagos in Bree-land). Almost always the quest and creature levels match very well. Hence characters may search for best suitable area to explore using this feature:
Note that attempting to enter a "Red Zone" will result in a warning pop-up. Should you enter such an area, ALL MOBS will agro on you from great distances away and will usually manage to "single-shot" your character.
While not exactly about levels, resources for crafting usually follow the main level of an area quite well. For example, Light Hide is looted from creatures of levels 1 to 13, Medium Hide from levels 13 - 25, and so forth. Resource nodes use to follow a similar but not identical pattern that is more loosely bound to the levels of creatures; the variance between levels and node tiers is more unpredictable and is subject to the mood of the developers at Turbine.