Liquid has surface tension. The particles would normally bond in all directions but at the surface they can only bond sideways and downwards. This means more bonds than usual are formed sideways creating tension. Where the liquid touches the side of a container, these bonds hold on. Gravity makes the liquid sag downwards in the middle. The sag is called the MENISCUS.
We always measure to the bottom of the meniscus.Here are the two pieces of measuring equipment we used in class so that you can see the resolutions.