I've actually never heard of school teams in reference to levels, aside from certification levels for coaches (unless they are competing in allstar competitions such as Jamfest, which uses allstar leveling). Typically school divisions are divided by school size/squad size and possibly into novice/intermediate/advanced for competition for some companies, and then sideline just follows NHSF/AACCA rules (i.e. no baskets for middle schools, no double twisting dismounts, etc.). I would inquire about it with the coach when possible, as the VHSA website had nothing about levels/stunting restrictions on there.
If your daughter's team is like most MS teams (lots of first time stunters), I wouldn't encourage them to do anything above halfs really. Anything more than that typically gets janky real fast at that age in school cheer overall, because the first year girls don't understand technique and start to use back/arms/etc. instead of legs to lift for more difficult stunts. Out of all the camps I've staffed, most MS teams have maybe one strong group (of all star kids lv 1-5) that can do extensions, and the rest I'd have to reiterate technique for preps over and over and over.
Oh gosh, its never good when the coach hasn't cheered before. Do you know if she's at least taken safety certification classes (AACCA spirit safety certified or the like)? It's important that the girls not only learn how to perform basic stunting skills, but also the rules of stunting (spotting, everyone understanding what skill is going up and how its going to get down before anything is built, perfecting skills before moving on, using technique, knowing that the only person that should be talking while stunting is the backspot, no goofing around while someone is in the air, etc.)! Otherwise you get kids just playing around while trying to put someone up and being distracted.....the "spotters" don't understand that they need to pay attention and step in to catch the top girl (there is the "'i dont want her to fall on me' mentality rather than the 'better me on the ground than her' mentality" with beginning stunters), so splat. Top girl on the ground.
I coach a HS Comp team under VHSL rules and I've never heard of any "levels" that the coach is referring to. Now, us in all stars who coach HS are saying "yes, we can do level 4 pyramids!" but I've never heard of being cleared to stunt at a particular level. I'm not familiar with the MS rules, just the HS portion but you can contact VHSL (it may take a while to get a response though) via e-mail is usually how I do it.
