Nitrous will always give a boost in power even at sea level, that's why the ricers are using it.

However in WWII it was mostly used to increase performance at high altitude.
We have one NO2 boosted plane in AH, the Ta 152. Or at least I think our version of it has the GM-1 booster, though it seems to be underpowered at very high altitudes in AH. The real one could do 470+ mph at 40,000 ft using GM-1 boost.