An old former Navy guy told me years ago level didn't have anything to do with it, you want the spindle parallel to the bed. Surprised this only has a few comments on it. I think this gets you to what Firstram mentioned above "Rollie's Dad", I think though this over simplifies it, it would be really nice to get the bed level with no twist, I think Rollie's Dad method would add twist to the bed when the issue is head to bed alignment . But I guess there is the Correct way and many "that works for this" ways. One could get a headache, for my little 12x36t I chose to get it level as I could with what I had then true the bed to the spindle with the test cuts. I believe this method is also in the old SB small lathe manuals, I think i have one downloaded that covers it. But i probably added twist to the bed...... or took it out, see now i have a headache.
Phil
Phil