The multilevel technique for combining block coding and modulation is investigated. First, a general formulation is presented for multilevel modulation codes in terms of component codes with appropriate distance measures. Then a specific method for constructing multilevel block modulation codes with interdependency among component codes is proposed. Given a multilevel block modulation code C with no interdependency among the binary component codes, the proposed method gives a multilevel block modulation code C' that has the same rate as C, a minimum squared Euclidean distance not less than that of C, a trellis diagram with the same number of states as that of C and a smaller number of nearest neighbor codewords than that of C. Finally, a technique is presented for analyzing the error performance of block modulation codes for an AWGN channel based on soft-decision maximum likelihood decoding. Error probabilities of some specific codes are evaluated by simulation and upper bounds based on their Euclidean weight distributions.