In what way should I ask the question in terms of word order?

Sentence:

1) What kind of level does it have

2) What kind of level it has

Answer

"What kind of level does it have?" is correct.

Since the verb is not "be", we use a form of "do" (called an auxiliary verb when we use it in this helping manner).

Rather than explain the rules in boring detail, I will give you several examples of sentences followed by questions about the same information:

I eat cheese. Do you eat cheese? What do you eat?

In most cases, we use an auxiliary "do". If a question word is asking for the answer, it comes first.

However, when the question word is about the subject, we don't need the auxiliary "do".

Who eats cheese?

Another example:

I am tired. Are you tired? Who is tired?

We don't need to say "Do you be tired?" because we generally skip the auxiliary "do" when using "be". There are some special exceptions to this, but they're rare and it's more important to understand the 99% cases well before learning the exceptions!

Here are some more examples:

I clean the floors. Who cleans the floors? Do you clean the floors? What do you do?

The use of "do" above is a more general question, and shows that we do use "do" with "do", just as we can say "She's being mean to me." ("is" and "is") and "I've had too much to eat!" ("have" and "have").

In sentences where the tense construction already has an auxiliary verb, we use that in the same way as we used "do" above. In other words, we don't need to add the "do".

Bob has eaten my pizza. Has Bob eaten my pizza? What has Bob eaten? Who has eaten my pizza?

Shirley is kissing Bob. Is Shirley kissing Bob? Who is kissing Bob? Who is Shirley kissing?

Notice that in the last two examples, the question word "who" refers to the subject in the first question, but it refers to the object in the second question.