As for depth of quench, that is up to you, the maker. You can adjust each individual blade in terms of toughness/flexibility vs. hardness/strength by varying the depth of quench. It all depends on your intended purpose for the individual piece. Form follows function.
As for oil depth vs. hardening depth, that depends on a couple of things as well. First is the steel you are using. 5160, 52100, or L6 all might harden slightly above the oil line as they have longer windows to drop from critical to below @900F. 1095 might harden slightly below the oil as it must drop to below @900 in around one second. In both cases this also depends on cross sectional geometry and depth of quench. A very shallow quench, say 1/4 of the blades width, will likely produce fairly close correspondence between oil line and hardening line. But if you quench higher up the blade, and if your cross sectional geometry is somewhat thick (usually not a good thing), their is a chance the blade will retain heat and not fully harden. This, of course, is more of a problem with 1095 and other steels with which you need a near immediate temperature drop. A final variable here is original heat. Are you heating the entire blade or just the edge? Are you sure all portions of the blade being quenched are at critical when you quench?
The hardening line you mention sounds like one of three possible things: portions of the blade never reached critical and so were not at critical going into the quench; portions of the blade cooled to below critical between the forge (salt pot?) and the quench; you quenched tip (or choil) first and waited too long to quench the other portion.
Also be sure your oil is preheated to between 120-160, otherwise it is too viscous to effectively remove heat from your blade. (There are other ways to quench with the oil at around 400F, but they are a bit more complicated and many oils will flame up on you long before they hit 400.).
John