During a crash I have bent my adjustment knob on Sram Code brakes and now after bleeding the lever is a bit too far away for my liking. The knob is bent and can't be turned. If I'll reduce the pressure in the system will it do the same as turning the knob out to make the lever closer? If so, is there any recommended procedure to reduce the amount of brake fluid in the system?
You cannot reduce the amount of fluid in the working part of hydraulic brakes. The reason is that hydraulic brake systems automatically draw fluid from the reservoir to compensate for brake pad wear and gradual advancement of the caliper pistons.
The way this works is when the levers are at their 'at rest' position the reservoir is connected to the rest of the system allowing fluid to be drawn in. The first part of the travel of the piston connected to the lever cuts off the reservoir and allows the caliper pistons to be pushed out to apply the pads against the rotor. This is also why you can push the caliper pistons back in when replacing pads.