If I create a hero from a level 2 class it is a level 2 hero. I would then get to either select a new hero talent or increase a characteristic increasing the point value as described. Later under the advancement section it states that if I take an additional talent it will increase the level of by hero (in the example a lvl 2 would go up to lvl 3). Further on it also states, "Hero Talents are not considered Class Traits, but a Hero can only have a number of Hero Talents equal to their level. If the hero starts at level 2 and 1 talent would it not take 2 additional talents to level up, or 3 if they chose the characteristic increase? Is my understanding of Hero Level correct?
Currently, I've been avoiding making any heroes due to not fully understanding the rule, which has caused the other players to avoid making heroes as well.
So when you create a hero from a Level 2 Class the new Hero maintains what abilities and options the class had and gains the opportunity to take a talent or increase a characteristic.
Leveling up a Hero. Anytime you advance a Hero they can take additional Talents.
The maximum number of Talents for a Hero are listed there due to abilities and campaign awards that can be taken. Interestingly enough some of these were removed to be fleshed out further in the future and are in the New 1st Age Campaign that is currently available as of today.