Do you mean like a bubble level? So long as the glass was sealed and could withstand the pressure, it would work pretty much the same way. The lower gravity would mean the bubble takes longer to center itself (lower force driving the oil), but in my experience the bubble is small enough and the oil thick enough that viscosity limits the speed of bubble motion anyway.
Ditto zut, except that less force driving the oil and viscosity limiting the speed anyway are the same thing. That is, the time required for bubble motion will be proportional to viscosity divided by gravity. Changing either one by x percent changes the result by x percent.
I believe some of the surface experiments the Apollo astronauts laid out on the moon had bubble levels. They were supposed to tamp the ground down until the bubble centered in the piece of equipment they were putting in place.
My guess is that carnut was alluding to the fact that a leveling tool doesn’t really make anything level on its own; it just gives information about what is level and what is not level.
That’s my guess, too, but it could also be something like “because they depend on gravity and there’s no gravity on the Moon”, in which case we’d have to correct him. That’s why I asked him to explain.