Capacitive liquid level sensing method comparison discussed in this app note from Texas Instruments. Link here (PDF)
Capacitive-based liquid level sensing is making its way into the consumer, industrial, and automotive markets due to its system sensitivity, flexibility, and low cost. With using TI’s capacitive sensing technology, the system flexibility allows designers to have the choice of placing the sensors directly on the container (direct sensing) or in close proximity to the container (remote sensing). Each configuration has its own advantages and disadvantages. This application note highlights the system differences and performance of direct and remote sensing to provide guidance in how capacitive-based liquid-level sensing is affected.