Arghh. This is not because "gamma is too high". This experience is normal.
Contrast is reduced because you are shooting through water and through additional optical elements. The more particulates in the water and the more water, the worse that is. A low contrast image, when properly exposed, will have a high black level. Shooting close, with good optics, will minimize this. Some underwater images don't have that much dynamic range anyway.
The simple fact is that underwater images don't frequently look like land images and in-camera software isn't optimized for them. Authors of the in-camera JPG code are expecting the image to look like something taken on land so, as a result, they choose a black level too low and the result is a hazy, washed out image. You are seeing this and responding to it by raising the bottom slider up in the levels control.
Look at it this way: if you take an image of a white wall, the result will be "highlights" from corner to corner. The in-camera software isn't going to assume that any of it should be black so it can't really determine ever what blacks should be. What is happening in your case is the camera thinks that the image should have that "haze" because, technically, it really is there. We want our images to look better than that, though.
The way to deal with this is to shoot raw, get your exposures correct, then set your black levels appropriate to your image. You may want to set your contrast, brightness, and curves to linear first, get the exposure control, white balance, and blacks correct, then adjust contrast, saturation, etc. to make your images pop. When done properly, a side effect of this is that backscatter is better controlled.
P.S. There are no "gamma settings" in the "JPEG algorithm". There is a gamma associated with the color space conversion that is applied (but that's invisible) and there is a tone curve. Tone curves and gamma are not the same thing.