Level is meta-info about the maximum resolution x framerate (pixel rate) and a few other things that are in the video file/stream:
https://en.wikipedia.org/wiki/H.264/MPEG-4_AVC#Levels . This was useful for old players that could only handle so much information at one time, but for modern players/devices not really a concern any more, they should be able to play any Level video.
The auto setting means that NVEnc calculates the "Level" instead of making you set it yourself. There's a bug in OBS where x264 calculates it wrong sometimes, but I've never seen that happen to NVEnc, so you can safely keep it on auto.
I think the GPU setting is for people with more than 1 graphics adapter, not sure though.