I ended up taking a slightly different approach compared to others here. About a year or so ago I was not ready to level my lathe, but I was browsing ebay or something and found what was advertised as a precision spirit level vial (only the vial) for like 7$ and figured it was worth a try. I believe it was supposed to be 2 or 4 arcseconds per division.
I had removed the headstock for cleaning which in hindsight was not very necessary, but I figured I wanted to learn how to align it anyways. Now that I've got the lathe on a sturdy base and reassembled I used the vial to take out bed twist as best I could . I have absolutely no way of verifying it's accuracy but I'd say It's pretty darn sensitive. The lathe stand is bolted to a concrete floor and the difference in reading when I stood next to the lathe as opposed to a metre away was about one division.
It is fairly easy to determine the sensitivity of your level vial. Fix it to a beam and adjust the beam for a level reading. Now place a shim under one end of the beam so that you shift the bubble by one division and using care not to disturb the position of the beam. The sensitivity of the level vial is the thickness of the shim divided by the length of the beam.
A 4 arc-sec./div vial would would have a sensitivity of .00023"/ft and a .0007" shim would move the bubble by one division with a 3 ft. beam..