Save Hierarchy Level is Unavailable in a Salesforce Report

Why Save Hierarchy Level is Unavailable on Custom Report Types

The Hierarchy Level filter can only be set when using Standard Report Types. The system is designed this way to avoid an overlap of information that should not be displayed to other roles based on the security level of the Child Objects from the Custom Report Type's object relationships.

The "Save Hierarchy Level" feature is not available on every standard report. See Filter Report Data by Role Hierarchy to view the report types where this filter option is available.