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Every mob NMEntities spawns carries a level. It defaults to 1 and is recorded on the entity, so it survives restarts and unloaded chunks.
Levels are recorded and readable, but nothing scales stats by them yet. Per-level health and damage formulas are their own feature. Configs written against levels keep working, and an addon can do its own scaling from the value today.

Where a level comes from

Scaling by distance

A spawner with world-scaling: true sets the level from how far out it is instead of a fixed number — the further from world spawn, the higher the level.
Tuned server-wide in config.yml:
A spawner 1,400 blocks out with the defaults spawns level 6 mobs.

Reading a level

In any effect text — messages, titles, setname, command:
Both read 1 for anything that was not spawned with a level. From code, NMEntitiesAPI.spawners().levelOf(entity) returns the same value — see Spawners in the API section.