For general information about CAD files refer to TIPS & TRICKS > IMPORTS & LINKS > CAD files (DWG)
DGN ENTITIES
Revit supports importing most DGN surfaces and solids with the exceptions of cones, B-Spline surfaces, and SmartSolids. For detailed information, see the table below.
KNOW ISSUES
Splines do not import well into Revit. Convert them to polylines or ordinary lines first.
Nested Cells are problematic, deep nesting may cause lines to disappear.
Revit can only control the display of 'Levels' of a linked DGN. If different line patterns are not on identifiable 'Levels' they can not be controlled. This can be a problem if DGN line patterns have a scale factor too large or too small for the Revit drawing it is in.
Linked DGN file.
IMPORTING 3D DGN FILES
CAD imports are not cuttable by Revit - they appear as elevation in sections.
To make them cuttable import (you can not use link) the CAD file into a new Generic Model family.
Then place that family into the project file.
If you want to use the CAD as a Mass, link it into a new Mass family (note walls, roofs etc. can be hosted on a Generic Model).