@Bob has given a body related understanding of oxygen levels.
God on the other hand has put into place a closed loop control system which regulates the atmosphere's oxygen levels at around atmospherically 21%. The primary control element is sunshine linked to the photosynthesis processes in all "plants." Atmospherically the control loop is self-regulating as nature slowly adjusts its parameters to maintain the atmospheric oxygen levels stable.
Now with regard to our bodies, the body requires a blood oxygen saturation that is normally above 92%. Altitude impacts the ability of our bodies to absorb oxygen from the air because of the changing relative density of the air with respect to altitude. A person who lives at sea level cannot go climbing up in a high mountainous area without carefully acclimatising his body so that it can absorb the necessary oxygen levels in his blood to survive in the higher altitudes. This is called Altitude Sickness and can result in the death of the person, generally because the heart muscle is not receiving enough oxygen to work effectively, and the person may suffer a fatal "heart attack."
When the blood oxygen level drops below 92% muscle damage can occur. When it approaches 80% for prolong periods of time it can be fatal.