Which classification level indicates that unauthorized disclosure could cause only limited damage?

The classification level that indicates unauthorized disclosure could cause only limited damage is "Confidential." This classification is applied to information that, if disclosed without authorization, could cause harm to national security, but the potential damage is assessed as being relatively less severe compared to the higher classification levels.

In the context of classified materials, information marked as Confidential is often deemed important but not critical to the extent that its unauthorized release would result in serious or grave damage, which is the threshold for Secret and Top Secret classifications. The use of Confidential classification helps manage and protect sensitive information while allowing for some level of sharing within controlled environments.

The other classification levels, such as Secret and Top Secret, indicate progressively greater degrees of potential damage that would result from unauthorized disclosure, while "Restricted" is not a standard classification level in U.S. classification systems but might refer to information that is controlled or limited in access without rising to the level of classified status.