Brazil midfielder Casemiro stretched Real's advantage right before halftime with a gut-busting run to meet a cross from compatriot Vinicius, but Levante hit back shortly after the interval through former Madrid forward Borja Mayoral.
Real Madrid failed to win their Champions League group for the first time in four years when a late goal by substitute Marco Reus allowed Borussia Dortmund to equalise and clinch a 2-2 draw.
Unai Emery's Villarreal were much improved in the second half and had spurned numerous chances before Moreno's leveller.
News of all that transpired on and off the football field.
News of all that's transpired on and off the football field
'I like to challenge myself. Competing against players much younger than me is something that I want to keep doing,' says Chess Legend Viswanathan Anand
News of all that's transpired on and off the football field
Real Madrid's Cristiano Ronaldo was the scourge of AS Roma again as he inspired the hosts to a 2-0 win and a place in the Champions League quarter-finals on Tuesday, scoring and setting up a goal Rodriguez to seal a 4-0 aggregate victory.
Images from the Champions League matches played on Tuesday
Real Madrid produced a gutsy performance to earn a 1-0 win at Sevilla, on Sunday, which took them level on points at the top of La Liga
A round-up of Sunday's matches in La Liga, Serie A and Bundesliga.
News of all that's transpired on and off the football field
Manchester City's quadruple bid remained intact as Ilkay Gundogan and Kevin de Bruyne secured a 2-0 win at Everton in their FA Cup quarter-final clash
Luka Modric pulled one back for Zinedine Zidane's shellshocked side with a brilliant strike from distance early in the second half before substitute Vinicius Jr reduced the deficit to one goal.
Breaking records has become Cristiano Ronaldo's favourite pastime. Very few footballers can do everything and Ronaldo is of that rare breed
Barcelona closed in on the La Liga title after beating 10-man Atletico Madrid 2-0 in Saturday's top-of-the-table showdown at the Nou Camp as late strikes by Luis Suarez and Lionel Messi gave the Catalans an 11-point lead at the top of the table.
The result also means second-placed Real Sociedad can reclaim top spot if they beat Eibar on Sunday.
Benzema to stand trial in sex tape case, says lawyer.
Eden Hazard finally scored his first goal for Real Madrid as his side beat second-placed Granada 4-2 in a highly entertaining game at the Santiago Bernabeu on Saturday to go four points clear at the top of La Liga.
Roma teenager Afena-Gyan plays down apparent racist remark.
In England, the celebrations went on at Leicester City as they marked their fairytale Premier League success with another win while champions Juventus' long unbeaten streak in Italy came to an end.
France striker Olivier Giroud ended a run of 10 international games without a goal by netting a stunning winner as the world champions claimed a deserved 2-1 victory over the Netherlands in their Nations League clash on Sunday.
Alexis Sanchez had equalised for the visitors, scoring on the rebound after Manuel Neuer saved his 30th-minute penalty but the Gunners suffered when captain Laurent Koscielny limped off injured to leave the defence exposed.
News of all that's transpired on and off the football field
Barcelona's fourth defeat of the season left them seventh in the standings on 14 points after 10 games, 12 points behind leaders Atletico.
The draw interrupted a run of four straight league wins for Zinedine Zidane's side and left them second on 67 points after 31 games, three behind leaders Atletico who thrashed Eibar 5-0 earlier in the day.
Juventus rehire Allegri.
Images from Champions League matches played across Europe on Tuesday
News of all that transpired on and off the football field
News of all that's transpired on and off the football field
IMAGES from the Champions League matches played on Wednesday.
At least two of the eight first-round groups of four produced tough obstacles for their participants to progress to the knockout rounds.
Images from football matches played across Europe.
Photos from the Champions League matches played across Europe on Tuesday
A summary of sports events and sports persons, who made news on Tuesday
Juve forward Cristiano Ronaldo had an unusually quiet game after scoring a hat-trick against Atletico in last year's competition, although he came within inches of grabbing a last-gasp winner when he sent a shot just past the far post.
Images from Champions League matches played across Europe on Tuesday
News of all that's transpired on and off the football field
News of all that's transpired on and off the football field
Hegerberg hat-trick fires Lyon to fourth straight Champions League