Degrees of Glory

From the LCMS:
The unmerited grace of God in Christ alone, not the believer's works or even faith itself, is the cause of eternal life (Eph. 2:8-9). Only those who in this life believe in Christ and His saving work become the recipients and possessors of the gift of life. All forms of work righteousness must be declared contrary to the Scriptural Gospel of God's unmerited grace. What the Scriptures reveal concerning eternal life is intended to serve as an incentive to people to believe in the Gospel (John 20:31), as well as to persevere in the faith in the midst of trials and persecution (Matt. 5:12; Rom. 8:37-39; 13:11-14; 2 Tim. 1:12; Heb. 13:13-16; 1 Pet. 1:6 9; 2 Pet 3:13-14; Rev. 2:10). The church is also moved to carry out the Great Commission in earnest (Matt. 28:18-20). The Christian doctrine of eschatology should always be taught and emphasized in the church with this practical concern in mind. 

In "body and soul," and in everlasting joy, believers will see God as He is--which is the essence of eternal life (1 John 3:2). To be sure, the believer already "has eternal life" (John 3:36) and thus is in a right relationship with God through faith in Christ. Yet in this life the believer knows God only through His Word, that is, mediately. When Christ returns, then God will be known perfectly and seen face to face (1 Cor. 13:8-12; 1 John 3:2; Rev. 22:4). The hope of eternal life springs from faith in the Gospel of the God of hope (Rom. 15:13). Eternal life is pictured in the Scriptures as a state of never-ending "blessedness." This means, on the one hand, that Christians will live forever in perfect freedom from sin, death, and every evil (Is. 25:8; 49:10; 1 Cor. 15:26, 55-57; Rev. 2:7, 11; 20:14; 21:4). At the same time, they will experience the unending joy of being with God in the new heavens and new earth (e.g., Revelation 21-22; Ps. 16:11). Forever eliminated is the possibility of falling away from God. This blessedness will bring with it the joy of being in eternal communion with fellow believers, whom we have reason to believe we shall recognize (cf. Matt. 17:3). And, there will be no limitations or degrees attached to the enjoyment of the happiness to be experienced, though there will be degrees of glory corresponding to differences of work and fidelity here on earth, producing praise to God but no envy (see 2 Cor. 9:6; Matt. 20:23). 

There is a difference between degrees of heavenly bliss and heavenly glory. There are no degrees of heavenly bliss, since all the saints of Christ shall see God and so will be completely blessed. However, scripture teaches that there are degrees of glory, commensurate with the faithfulness and sufferings of Christian believers in this life. There are "higher" and "lower" positions at the feast table of God.  In terms of heavenly bliss, all believers are at that table.  In terms of glory, however, some will have places of higher honor than others, such as Lazarus, who was called home to heaven and seated at the high and honorable position of Abraham's bosom. However, this is a teaching that is not discussed often. It is almost considered taboo, because the fear is if people think too much about it, then good works will be tainted even more by our motivation for higher glory, making teaching it counterproductive to its message. I am not sure I buy that argument though, because "All Scripture is God-breathed and is useful for teaching..." (2 Timothy 3:16)

Conversely, there will also be degrees of torment and punishment for the unbeliever. Indescribable torment will be experienced consciously, the degree determined by the nature of the sins to be punished (Matthew 11:20-24; 23:15; Luke 12:47-48).