A two-level domain decomposition method is introduced for general shape optimization problems constrained by the incompressible Navier-Stokes equations. The optimization problem is first discretized with a finite element method on an unstructured moving mesh that is implicitly defined without assuming that the computational domain is known and then solved by some one-shot Lagrange-Newton-Krylov-Schwarz algorithms. In this approach, the shape of the domain, its corresponding finite element mesh, the flow fields and their corresponding Lagrange multipliers are all obtained computationally in a single solve of a nonlinear system of equations. Highly scalable parallel algorithms are absolutely necessary to solve such an expensive system. The one-level domain decomposition method works reasonably well when the number of processors is not large. Aiming for machines with a large number of processors and robust nonlinear convergence, we introduce a two-level inexact Newton method with a hybrid two-level overlapping Schwarz preconditioner. As applications, we consider the shape optimization of a cannula problem and an artery bypass problem in 2D. Numerical experiments show that our algorithm performs well on a supercomputer with over 1000 processors for problems with millions of unknowns. that is, Here,ˇD 10, Re D 500, N h D 1:1 10 6 , and N H D 7:0 10 4 . In algorithm One-One: ı D 8; in algorithm Two-One: ı h D 8, and ı H D 4; in algorithm Two-Two: ı h D 0 and ı H D 2.