In answering this question, please refer to the "Swimlanes.graphmlz" example at:
Help >> Example Graphs >> Swimlane >> Swimlanes.graphmlz
"Lane 1" apparently was given two nested lanes "Lane 1.1" and "Lane 1.2".
I could not readily identify what is the procedure for creating such "nested lanes" (with siblings).
While we are at it, how many nesting levels are possible?
The process I am trying to diagram will also require nesting columns. Can columns be nested like in the "Lane 1" example? is the procedure comparable or different?
Yes, columns can be nested in the same way as rows.
Simply drag a selected column/row into another column/row to create nested columns/rows (see also Changing the nesting level of rows or columns).
You can create as many nesting levels as you want to.