What is a top-level statement in Python?

In python, the statements which are not indented are called a top-level statement. Internally python gives a special name to top-level statement s as __main__.

Here's the first mention of "top-level statement":

Once modu.py is found, the Python interpreter will execute the module in an isolated scope. Any top-level statement in modu.py will be executed, including other imports if any. Function and class definitions are stored in the module’s dictionary.

This makes it clear that what they really mean is "things that are interpreted at import time".

While it's not terribly helpful directly, the Python documentation itself also uses the phrase "top-level" (components, which then means "statements" in this context).

Note that this module:

"""a python module, spam.py"""

def spam():
    return "spam"

class Spam(object):
    pass

has two statements in it, the def and the class. These are both executed at import time. These definitions are compound statements (see def and class descriptions). If there are decorators attached to a top-level def, that adds even more top-level things to run. (See also user2357112's answer: running a class statement invokes more internal workings.)

Add an import sys at the top and you've added a third statement, which imports sys. However, if you add this:

def ham(eggs):
    import os
    return os.path.basename(eggs)

you have still only added one statement, the def ham, to the top-level stuff. It's when ham itself is executed (called) that the import os will be run.

It's not just variable declarations (and there aren't any variable declarations anyway). It's pretty much anything that starts at indentation level 0.

import sys         # top-level

3 + 4              # top-level

x = 0              # top-level

def f():           # top-level
    import os      # not top-level!
    return 3       # not top-level

if x:              # top-level
    print 3        # not top-level
else:
    print 4        # not top-level, but executes as part of an if statement
                   # that is top-level

class TopLevel(object): # top-level
    x = 3          # not top-level, but executes as part of the class statement
    def foo(self): # not top-level, but executes as part of the class statement
        print 5    # not top-level