Real came under heavy pressure early on but Karim Benzema gave them the lead towards the end of the first half from the spot after a penalty was correctly awarded for handball by Enis Bardhi following a Video Assistant Referee (VAR) review.
Levante, who pulled off a shock 2-1 win over Real at the Santiago Bernabeu earlier this season, deservedly drew level on the hour mark with a sliding finish from Roger Marti, who had struck the woodwork twice before the interval.
Real were then awarded a hotly-contested penalty following another VAR review when Casemiro went down theatrically after light contact from Levante substitute Cheick Doukoure.
Wales forward Bale, who had only replaced Benzema minutes earlier, deceived Levante keeper Aitor Fernandez with an ice-cool finish from the spot but barely celebrated the goal, brushing away team mates who tried to congratulate him.
Real are third in the standings on 48 points, two behind Atletico Madrid who beat Villarreal 2-0 earlier on Sunday and still adrift of Barca, who won 4-2 at Sevilla on Saturday.
NACHO DISMISSED
Real also meet Barca in the second leg of their Copa del Rey semi-final on Wednesday with the tie level at 1-1.
Levante's Ruben Rochina, meanwhile, received a second yellow card for venting his fury at the officials from the sidelines after being replaced by Doukoure, having earlier been booked while he was on the pitch.
"It was a very difficult game, they played a block of five players in midfield and it was very hard for us to create chances, but we took advantage of the opportunities we got and fortunately they did not," said Real defender Dani Carvajal.
"I was 25 metres away and I could hear the kick, I'm not a referee and they have a tough job and if the referee gives a penalty and the VAR ratifies it then it must be a penalty," he said.
But Levante president Quico Catalan was bemused by the decision, saying: "The more replays I see the less I understand it. I've seen it 37 times and it seems very, very harsh to me".
"If Doukoure had really hit Casemiro he'd have had to be taken off in an ambulance, and it surprises me even more that this penalty was awarded due to VAR."