Okay, let's suppose we start with a regular SLC. It can only have two levels, a positive voltage and zero, representing a logical 1 or 0, a single binary digit.
But we need to realize that this is only
theoretically true. In practice, it's a bit different.
A flash cell is sort of like a regular transistor but with an extra gate that is separated from the normal one and electrically isolated. Like so:
This image conveniently describes how the floating gate is charged. So when you write a "1", you are programming in this voltage. Let's say for convenience that the voltage level for a 1 is 3V. (It's much lower than that in practice.) A 0 bit would be 0V.
Now, when you want to read the cell, it's not really going to have either 3V or 0V in it. Because of real world issues like leakage and so forth it will have something you hope is close to 3V for a 1 and close to 0V for a 0. You can arbitrarily decide that anything above 1.8V is a 1, and anything below 1.2V is a 0, and if it's between 1.2V and 1.8V, then you aren't really sure and you're going to call it an error and use error recovery rather than trusting the value in the cell.
But wait, the engineer says... why only use a single positive voltage? Instead of 3V for 1 and 0V for a 0, let's program two bits as follows:
0 0 = 0V
0 1 = 1V
1 0 = 2V
1 1 = 3V
So instead of always sending 0V or 3V into the gate, you can now send 0V, 1V, 2V or 3V. There are now four voltages which can represent two bits.
Again, those ideal voltages won't actually be seen -- instead, you have to define ranges around them that will be interpreted as those values. But now you have much less room around each value -- instead of 3V separating a 1 and a 0, you have only 1V separating any two nominal values. Thus, the chance of error is higher, and that's why MLC is less reliable than SLC. The need to be able to precisely program different voltage levels also, I believe, leads to reduced longevity.
With TLC it's the same, only now you are dividing the possible voltages even more finely, so it gets even more tricky.