Magnetic levitation (MagLev), in which an object is levitated with no support other than magnetic force and buoyancy force, is a powerful tool employed in many applications regarding the characterization of materials, biosensing of macromolecules, separating of cells, and monitoring of cellular events. Levitation of an object in MagLev depends on magnetic susceptibility and density of that object relative to its surrounding medium. In this thesis, MagLev-based miniaturized and affordable assay formats for biomolecule detection and cell separation were investigated. In this regard, a novel biomarker method detection in MagLev was developed using polymer microspheres as three-dimensional (3D) assay surfaces to capture target proteins and magnetic nanoparticles to label the captured target on the microspheres. Levitation heights of the microspheres conjugated to the protein were distinctly different than those of without protein. Thus, the magnetic susceptibility change of microspheres was precisely measured to convert the levitation height of microspheres into protein concentration. The principle developed for a biotinylated target protein was then investigated by designing sandwich immunoassays using model protein biomarkers: mouse immunoglobulin G and human cardiac troponin I. The developed assays enabled a protein detection range of femtogram-microgram per milliliter. In addition to biomolecule detection, using a lensless holographic microscopy-integrated MagLev platform, three different cell lines, bone marrow stem cells (D1 ORL UVA), breast cancer cells (MDA-MB-231), and human monocyte cells (U-937), were distinguished based on their density. The results revealed that the methods developed here could contribute to the magnetic MagLev-based sensitive and inexpensive bioanalytical applications.