Yes, the fuel level in your carb should only rise so high. Then the float pushing the float needle into it's seat should stop the fuel flow into the carb. The correct level is right about at the seam between the carb body and the float bowl .....
If it gets much higher than this, gas will start coming out of the carb. You say your float and the float needle and seat are good. Maybe they are. There may be some dirt in the float needle seat keeping the needle from closing all the way. But if your float needle and seat assembly is aftermarket, it's possible it's junk and bad. My dealer told me he quit using those aftermarket assemblies because he had too many bikes come back to him leaking.