A common recommendation is to set the treadmill to 1% incline to mimic outdoor running. The idea comes from research showing that the absence of air resistance makes treadmill running slightly easier, mainly at faster speeds.
At easy speeds, the difference between treadmill and outdoor running is small for most people
At faster speeds, air resistance outdoors becomes more significant, so a small incline compensates
Treadmill calibration varies; the displayed speed is not always exact
Heat builds quickly indoors; a fan helps keep heart rate and effort realistic
For easy runs, 0-1% incline is fine and comfort is what matters. For threshold or interval sessions where you want effort to match road paces, 1% is a reasonable default. Use heart rate and perceived effort to check that the sessions feel similar.