I have a known piece of wood that is level, if I put my 2 ft level on it and it reads off about a 1/16 when flipped from end to end, this is the same thing as being level? If the level if off 1/16 when flipped from end to end , the same, I can assume that my new board is level? Tks

If you are absolutely sure the wood is level, then the level is defective. 1/16" in 2' doesn't sound like much but in an 8 ft wall, it's 1/4 inch.

I think you are confusing the terms "level" and "straight".

A piece of wood can be straight without being level. For example, you can have a perfectly straight piece of wood - cut perfectly and not warped at all - but if you lean that board up against a wall, it is not going to be level.

You can also have a piece of wood that has various carvings out of it and so on, so the edge is not straight, but it is hung evenly on a wall. This is a case of wood that is not straight but is level.

For most building applications, you want both. So make sure you have a straight piece of wood. As for it being level, that's a matter of how you install it. Position it with your eye, and use a level (a tool) to determine if it's level before you fasten it in place.

Run it through a planer to make it really level/flat/square/true. A loose piece of wood is only as level as the surface it is resting on.