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In 2.10, many ZC features require that a level number be assigned to the current Dmap in order to work. Different level numbers carry different preset characteristics, some of which are commonly confused with Dmap type (i.e. Dungeon vs. Overworld Dmaps). Following is a list of the various properties of different level numbers, which are applied to whatever Dmap you assign them.
Level number 0 is intended for overworld areas. Many properties ZC users typically attribute to overworld maps are, in actuality, dependent on having the level number set at 0 (which is the default). For instance, Whistle warps (aka "calling the whirlwind") will only work on Dmaps set to "level number 0." On a level 0 Dmap, Room types, Guys, and message strings set on a screen are not used for the screen itself. They are instead set aside until the player enters a Cave/Item Room or a Passageway. Then, the data is used with screen 80 (81 for 3 stair warps), and appears when Link appears on that screen after a cave/item room warp.
(Exception: if you set the Guy as a Fairy, the Fairy will appear on the screen itself. This is because overworld screens in the original Legend of Zelda often had fairy springs where the fairy appeared above ground.)
Level numbers 1-8 are reserved for maps that contain Triforce pieces. Each Triforce piece is linked to a level number according to the Dmap on which you found it. Obtaining a Triforce on any other level number will cause ZC to fail to record the acquisition on the Triforce chart. On Dmaps that use level numbers 1-8, the Room types, Guy, etc. are applied to the screen they are set on.
Levels numbers 9 and up maintain nearly all of the properties of level numbers 1-8, but do not support Triforce pieces. Level 9 can be assigned a Whistle warp location, but it serves no real purpose, as completing the quest does not activate it. Level numbers 10 and up are useful for screens intended for things like dialog, and other common ZQuest tricks. However, they can also be used for caves/interiors, and additional dungeons.
In ZC 2.50, you will be able to bypass any of these hindrances with the Dmap editor under the flags tab. With those settings on, you will only need level numbers for Triforce pieces, level-specific keys, and boss flags.