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1) Row Wise Initialization used to hold multiple values in a variable. Let says SQL gives 4 rows (A,B,C,D) as output. Now I want to hold 4 value in a variable to get this happen we need to go for RowwiseIniziation. If you do not do this at any point in time Variable holds only value A not others. Simply it works as Array.
2) Level keys define the unique elements in each level and provide the context for drill down. You can make two logical columns as logical key but you need to make sure what to be displayed in your hierarchy by selecting DISPLAY. If you make to as separate logical keys and set Display for both you get two columns in the hierarchy