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Fleets will start from Level 0 as your fleet goes on expeditions you will gain experience and level up, the level of your fleet will improve your rewards as you progress and receive more experience. You get 5 experience point in a linear way in each expedition you attend (win or lose).
The levels will be very important to see the progress of your fleet as each percentage of reward improvement accumulates, so as time goes by, your fleet will get better rewards than before.
In the following table you can see the amount of experience required per level, and the number of expeditions needed to achieve that experience, for example, for level 20 you will need 50 expeditions with that fleet starting from level 0.
Table of levels and reward improvements.