Is there any way to record audio in high quality?
And how can I read information that user is saying something? In Audio Recording application you can see such indicator (I don't know the right name for it).
At the moment, a big reason for poor audio quality recording on Android is the codec used by the MediaRecorder class (the AMR-NB codec). However, you can get access to uncompressed audio via the AudioRecord class, and record that into a file directly.
The Rehearsal Assistant app does this to save uncompressed audio into a WAV file - take a look at the RehearsalAudioRecord class source code.
The RehearsalAudioRecord class also provides a getMaxAmplitude method, which you can use to detect the maximum audio level since the last time you called the method (MediaRecorder also provides this method).