...level 2 actually shows you exactly how far the notes are supposed to go up or down, and even tells you how long or short to play each note, so you can play a song even if you've never heard the song before! All the notes for level 2 will be graphed on what is called the "treble clef". Here's how to read level 2:
1 - Lines and Spaces
The head (the round part) of the note can either be directly on a line or right between lines (on a "space"). Each line and space represents a specific note. You can use your cheat sheet until you can memorize the letters for each of the lines and spaces.
2 - Rhythms
The rules are pretty much like this: the more stuff on a note, the faster it goes. Just a hollow circle by itself gets held out for 4 beats. Add a stem and it's only worth 2. Fill it in - now it's only worth 1 beat. Throw a flag or a bar on that stem: half a beat! Each additional flag or bar cuts the value in half, meaning you play it twice as quickly. So hang on to those hollow notes for a long time and zip right through those filled-in notes with flags and bars. (To really get in-depth on the details on how to correctly read rhythms, you can join Klopol Piano Academy for free or just learn the basics by watching this video.)
3 - Intervals
Even faster than memorizing the letter for each line or space is by playing "intervalically." First, find out your first note, then just ask, "Is the next note up, down, or does it stay the same?" Then just go in the same direction as the notes on the page.
If the note is going from a space to the next space up or the next space down, you're going to skip over a note (this distance is technically called a "third", but I just call it a "skip"). The same goes for moving from a line to a line: it's a skip away. Is the next note TWO lines or spaces away? ...that's a double skip (technically called a "fifth").