In Dragon Story you gain experience for completing various tasks such as harvesting crops, hatching dragons, clearing obstacles from your piece of land and completing goals etc.
As you gain experience, you level up and as you level up new buildings, habitats and decorations open up. Not only does leveling up grant you access to new structures but also increases the maximum number of a certain building type that you can have on your plot of land.
There are a total of 40 levels in Dragon Story and the buildings and limit increase that you get with each level up are as follows:
| Level | Items Available | Increase in Maximum Number |
| 01 | Red Rocks Fire Dragon Forest Dragon Green Grove Stone Path | 2 Habitats 1 Nest |
| 02 | Farm Air Dragon Yellow Plateau Flower Bed Large Flower Bed Fire Banner | 3 Habitats 2 Nests 2 Farms |
| 03 | Evolution Temple Forest Banner Archway Flowering Hedge Wild Dragon Life Dragon Forestfire Dragon | 4 Habitats |
| 04 | Air Banner Firestorm Dragon Eagle Dragon Scorpion Dragon Fruitful Dragon Fairy Dragon Parakeet Dragon Honeybee Dragon | 4 Habitats 3 Farms |
| 05 | Unlocks Expansion (ability to add more land) Unlocks Big Red Rocks upgrade Breeding Den | 5 Habitats |
| 06 | Unlocks Big Green Grove upgrade Hanging Lanterns | 6 Habitats |
| 07 | Unlocks Large Farm upgrade Water Banner Water Dragon Blue Lagoon Athletic Dragon Island Dragon Serpent Dragon Atlantis Dragon Mist Dragon Mindvolt Dragon Seabreeze Dragon Mermaid Dragon Clown Dragon | 6 Habitats 3 Nests 4 Farms |
| 08 | Diamond Fields Magic Banner Caretaker Cabin Castle Tower | 7 Habitats |
| 09 | Unlocks Big Yellow Plateau upgrade | - |
| 10 | Purple Gardens Diamond Banner Dragonwish Pond Magic Dragon Titan Dragon Diamond Dragon Charm Dragon Poison Dragon Coral Dragon Genie Dragon Familiar Dragon Wizard Dragon Trickster Dragon Planet Dragon Aether Dragon Crusader Dragon Gold Dragon | 8 Habitats 5 Farms |
| 11 | Unlocks Big Blue Lagoon upgrade | 9 Habitats |
| 12 | Unlocks Big Purple Gardens upgrade Picnic Park Quetzal Dragon Infinity Dragon Mercury Dragon | 10 Habitats |
| 13 | - | 6 Farms |
| 14 | - | 11 Habitats |
| 15 | Abadoned Castle | 12 Habitats |
| 16 | - | 13 Habitats 4 Nests |
| 17 | Light Banner White Meadow Light Dragon Tusker Dragon Laserlight Dragon Love Dragon Fuzzy Dragon Pegasus Dragon Sunrise Dragon Griffin Dragon Winter Dragon Ice Cream Dragon Dream Dragon Luck Dragon Hypnotic Dragon | 14 Habitats |
| 18 | Unlocks Enchanted Farm upgrade | 15 Habitats |
| 19 | Unlocks Big White Meadow upgrade | 16 Habitats |
| 20 | Dragonride Shrine Angel Dragon Virtue Dragon Justice Dragon Flower Dragon Kite Dragon Bubble Dragon Pink Prairie | 17 Habitats |
| 21 | - | 18 Habitats |
| 22 | - | 19 Habitats |
| 23 | - | 20 Habitats |
| 24 | - | 21 Habitats |
| 25 | - | 22 Habitats 4 Nests 6 Farms |
| 26 | - | 23 Habitats 4 Nests 6 Farms |
| 27 | - | - |
| 28 | - | 24 Habitats 4 Nests 6 Farms |
| 29 | - | - |
| 30 | - | 25 Habitats |
| 31 | - | 26 Habitats |
| 32 | - | 27 Habitats |
| 33 | - | 28 Habitats |
| 34 | - | 29 Habitats |
| 35 | - | 30 Habitats |
| 36 | - | 31 Habitats |
| 37 | - | 32 Habitats |
| 38 | - | 33 Habitats |
| 39 | - | 34 Habitats |
| 40 | - | 35 Habitats |
