Blossom, it's all a bit of a nightmare really....
The majority of Year 2 children 'should' be working within level 2.
Because the range of achievement within one level can be quite marked (on average 1 and a half years of progress), the level has been broken down into 2c (lower end, may not be predicted to achieve the desired L4 in Y6) 2b (average for Y2) and 2a (upper end, working near to L3). Some children do achieve L3 in the KS1 SATs, but count this as a 3c (just a L3), as the scoring/assessment doesn't break the L3 down until Y3 tests (confused yet? , you will be...)
I think that this year the levelling isn't done wholely on the test scores, with teacher assessment levels as a sideline. I think the teacher's ongoing assessment can take precidence over the test scores if the teacher feels they are unrepresentative of how a child is achieving (which I think is a much better idea). Therefore by now the Y2 teacher should be starting to get a good idea of the level your ds is working within, and where they are likely to be in May (traditional testing/assessment month).
I'd be surprised at a prediction of "L2c, or maybe L3", as there is a huge difference. I'd go back and talk to the teacher again if you can, especially if you feel confused. They should be able to explain this better face to face (it's all rather complicated, don't you think!)
Incidentally, I wouldn't hold too much store in the exact levels anyway. Junior teachers always complain that the levelling in the Infants comes out too high (Y3 teachers always have an awful time with apparent drops in levels as if children's learning has gone backwards), when infact the criteria changes, making a mockery of the whole levelling process (eg. a L3 in Y2 doesn't equate to a L3 in Y4 etc etc).
Sorry if I've rambled and confused you all the more. Perhaps others will explain it more succinctly