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I'm sure this question has been asked many times, but I am English and my daughter is learning piano in the USA. In England there are 8 "Grades" but here in USA my daughter has never been graded. Most books she works with have "Levels". Are "Grades" and "Levels" similar? Is there a documented relationship between the two systems?

There is no standardized agreed-upon grading system. Even within different countries, it all depends on what organization the teacher belongs to as to what grade or level someone is. More than likely, the levels you are referring to are simply a manner of separating levels of a method book series. Sure, the higher the number, the better your daughter is getting (presumably!). Perhaps if you could tell us what she is currently playing, we could make a guess as to where she stands overall (Early Intermediate, Late Elementary, etc.), but even then, that will vary widely depending on the teacher. There is really no hard-and-fast rule as to level or grade in general.

They're all useless basis for one's skills.

I've been following a graded system here in Malaysia (British) and being exposed to the 'levels' in the States, i would say what seems to be regarded as somewhat complete or a high level (Grade 8) is an Intermediate level in USA...

I am judging based on the technical difficulty of pieces used for examination in ABRSM. An example for grade 8 would be first movement of Beethoven's 1st Sonata, or a movement of an easy Mozart/Schubert sonata.

But even such statements as "Intermediate" doesn't hold much weight. Is it Late Intermediate? Some may consider those Early Advanced. And every system out there has their own angle on things. It is so subjective, that it is much better to assess one's progress base don how well they play whatever their level is. At any level one can be expressive and show mastery of the material.