The idea of different levels in hell probably stems from Chinese mythology where there is the notion of 18 different levels of hell with each lower level meant for sinners with increasing heinous sins. The Bible has no such references to levels.
The Bible refers to the lake of fire as the place that sinners will end up if they are not saved by the work of Jesus Christ (cf. Revelations 20:15). Who will end up there? Anyone who is a sinner. And who is a sinner? Well, the Bible says everyone is. Romans 3:23 says, "For all have sinned and fall short of the glory of God..." The only way to is to believe the fact that Jesus came to take on the punishment for you and thus God's justice is satisfied and His mercy (what Jesus did) saves us.
The question that arise is this: Isn't it unfair that someone who only did a minor sin like lying is condemned in the same way as someone who did something really horrible, like murder? The Bible says in James 2:10, "For whoever keeps the whole law and yet stumbles at just one point is guilty of breaking all of it."
Think of this analogy: you have a barrel of the most expensive, best-tasting wine in the world. It is absolutely perfect by any standard. Then you take a teaspoonful of sewage and mix it into the barrel of wine. Would you still want to drink any of the wine? No! The entire barrel of wine is ruined.
In the same way, one little sin ruins our life. Our whole life is spoilt because of that one small sin. God is a perfect God and in Him is not a single hint of unrighteousness. The small sin is offensive to him. The Law shows God's standard of righteousness. Thus, breaking or violating any point in God's standard of righteousness means we are ineligible to be in His presence. Sin is the dishonouring of God's holiness. And the slightest dishonour separates us from him completely.
But if we are honest with ourselves, we will acknowledge that we're not guilty one a few little sins. We are guilty of dishonouring God in big ways. We lie, we are not loving, we are envious, we murder in our heart, we bear grudges, we lust after the flesh. Romans 1:29–32 gives a long list of our indictments: "They were filled with all manner of unrighteousness, evil, covetousness, malice. They are full of envy, murder, strife, deceit, maliciousness. They are gossips, slanderers, haters of God, insolent, haughty, boastful, inventors of evil, disobedient to parents, foolish, faithless, heartless, ruthless. Though they know God's decree that those who practice such things d deserve to die, they not only do them but give approval to those who practice them."
Ouch indeed. The Christian then is someone who realises how guilty he is of all these things and that there is no way he can escape these charges. The verdict is clear: we are guilty of sin. The sentence is also clear: eternal separation from God in hell. But a sinless substitute comes to take on the punishment on our behalf. Someone who has lived a perfect life and isn't guilty of breaking any of God's standards. That person is Jesus. He died on the believer's behalf, perfectly satisfying the punishment that the Law requires.
Therefore, we can see why the salvation that Jesus bought for us, at the price of his own blood, is so very precious. Let us treasure it and treasure Christ above everything else in our life.