Originally posted by Terratrox:

Oh is it 'level' to where like... if you raise the ground with the hoe, you're raising it 1 level? Because I meant like... like minecraft level. A more or less perfect plane. Because if I build directly on the ground, some of the floor tiles either connect under the ground or can't be placed at all. But it's not as big a difference as raising the ground level is.

Yes you can imagine it like the minecraft levels. Only difference is in valheim you can raise the land soft within on level. So you don't have the stairs like look as in minecraft. The hoe is only to do the soft terrain level between 2 main hight levels (the minecraft levels). To get one main level lower you need the pickaxe or to get higher you need to fill it up.
You won't get an absolutely flat ground like in mindcraft, but it gets flat enough to built a floor on the ground. It the is terrain visible at some spots just lower it a bit with the hoe.