Player Level gates some features, e.g. new die slots are unlocked on specific levels. Earning a Player Level also grants rewards, e.g. energy fills and free Dice Hunts (gacha rolls). Most importantly, the level of your dice can not exceed your current Player Level.
Player Level can be increased by earning experience points (EXP). You can get EXP from e.g. Quests, Dice Hunts, Patrols, and by winning levels on the map .