Trent, if I'm guessing correctly about what you are talking about, the "wheel" is the flywheel and "the thing above it" is the coil (or "armature" in Briggs terminology).
There's supposed to be a gap between them, the thickness of a business card is close enough.
Likely, you engine is old enough there's still breaker points beneath the flywheel, and they're probably corroded, making for no spark. To clean or replace them the flywheel has to be removed.
The coil (armature) can be replaced with a later unit giving electronic ignition and eliminating the need to remove the flywheel for access to the points 'cause they get abandoned in the changeover.
If you look closely on the sheet metal cover around the flywheel there should be Briggs ID #'s. Write 'em down and go to BriggsandStratton.com and you SHOULD be able to access an on-line manual for the engine or buy a hard copy from a local mower shop or ebay.
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