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The level you're referring to is called Whimsyshire.
You'll need a "Staff of Herding" in order to get to Whimsyshire. The staff is crafted by combining four different items, which you can collect throughout the Diablo world. You will also need to purchase the plans for the staff or get them to drop off of Izual. Once you have crafted the staff you can enter normal difficulty's Whimsyshire. In order to go into a higher difficulty of whimsyshire you will need to purchase the more expensive crafting plans for the "Nightmarish," "Hellish," and "Infernal Staff of Herding." I recommend you search for the locations of the pieces of the staff on the Diablo 3 Forums or search through your preferred search engine on the internet. Also, here is a link to the staff and crafting materials I speak of:
Good luck and watch your back...those bears are crafty.
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