Leveling the Seestar along with the internal compass are the equivalent of the "Level North" procedure for a typical Alt-Az telescope such as a Celestron Nexstar or Sky Watcher AZ-GTi, etc. For these the alignment directions say to point the telescope to the north and level the OTA when setting up. For the Seestar, leveling serves the same purpose while the compass in the Seestar provides the northern direction. Why do we do this? This enables an Alt-Az mount, including the Seestar, to assume a sky pointing model and be fairly close so that it finds the first object in the night sky you tell it to point to when performing the next step in the GoTo alignment process. In the case of a non-Seestar Alt-Az telescope the next step after "Level North" is to go to one or more stars in the sky, center them in the field of view and press Enter to let the telescope know that it is pointing at the object desired. This is how the non-Seestar Alt-Az telescope refines its pointing model so you can go to any number of objects throughout the night and they will be in the field of view. For the Seestar, the Horizontal Calibration substitutes Plate Solving at 3 points spaced 15 degrees apart for finding and centering 1 or more stars. If the mount is not leveled first, you will still be able to refine the pointing model on the non-Seestar telescopes but it will likely be off on the first couple of stars you tell it to point to and you will have to move the mount further to bring them into the field of view. For the Seestar, if it is not level, or the compass calibration is off, the same thing will happen, but Plate Solving will eventually get a good pointing model.
Now one caveat to this. Since the Seestar HC only looks at a small portion of the sky (30 degrees from one side to the other) whereas all of the GoTo alignment instructions for typical Alt-Az mounts suggest using stars farther apart in the sky and no in a line, I suspect ithe Seestar's pointing model will be more accurate when looking in the opposite direction of the sky if you take the time to make sure that it is level.
Simply put, leveling of the Seestar is not absolutely necessary but can speed up the initial HC process. And it takes a few seconds to do.
Regards,
Curtis