For a multilevel list, always edit the settings (including indentation from the left) via the multilevel list dialog box. Click in the first level 1 item in the document and then click Home tab | Multilevel List | Define New Multilevel List (obviously, "Define New" is misleading, but that's the name of the command). For more on the options in the dialog, take a look at
http://shaunakelly.com/word/numberin...g20072010.html (applies to Word 2007, 2010, and 2013).