so I was wondering if we're allowed to have each level different colours but still keeping it 1Bit?
or is it 2 colours in total
You're allowed to palette swap, including between levels.
So, if I'm understanding you correctly: as long as there's only 2 colors on screen at any given time, we're good? Even if, like, one room or level is red/blue, and another room/level is green/black, for example?
correct