If you buy a secondhand level, it can be checked for accuracy, and corrected, by taking a reading facing in one direction. When turned through 180 degrees the readings should be the same. If they are not, the level should be adjusted until the readings at 180 degrees are the same.
Without a level, a lathe can be adjusted to eliminate twist by using the method advocated by Myford, and described in Ian Bradlewy's book, "The Amateur's Workshop" on pages 27 and 28.
The Myford 7 Series Manual, again by Ian Bradley, describes the method on pages 41 and 42
In "The Amateur's Lathe" L H Sparey, on pages 35 and 36, describes, (not so clearly, in my view ) how to level a lathe using a D T I.
Howard