org-cycle-level-after-item/entry-creation

org-cycle-level-after-item/entry-creation is a variable defined in `org.el'.
Its value is

t

Documentation:
Non-nil means cycle entry level or item indentation in new empty entries.

When the cursor is at the end of an empty headline, i.e., with only stars
and maybe a TODO keyword, TAB will then switch the entry to become a child,
and then all possible ancestor states, before returning to the original state.
This makes data entry extremely fast: M-RET to create a new headline,
on TAB to make it a child, two or more tabs to make it a (grand-)uncle.

When the cursor is at the end of an empty plain list item, one TAB will
make it a subitem, two or more tabs will back up to make this an item
higher up in the item hierarchy.

You can customize this variable.