It is a hollow knurled bolt in which the cable is present and it is where the cable goes out from the level and enters into the caliper.
Bike brake cable adjuster.
Some bikes come with inline adjusters that are along the cable outer.
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All braking systems with cables have a barrel adjuster as well.
Zeno in line cable tension adjusters makes on the fly derailleur adjustments easy for frames without downtube adjuster stops.
Loosening the barrel adjuster will actually slightly tighten the brake cable.
Loosen the barrel adjuster attached to the loose brake cable by turning it counterclockwise.
After you loosen the barrel adjuster pull the brake lever to see if it fixed the problem.
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A barrel adjuster will allow the fine adjustments to the tension of control cables.