Improve on meshing
 

Background: I am trying to simulate a propeller blade rotating within a fluid domain. The blue portion is the blade domain which will rotate and the grey portion is the static fluid domain. Oh and this is just a quadrant.

I am trying to improve on the mesh I have. One of the problems I have is that the inflation layer does not match I have tried various types of methods but is still to no avail.

If by not matching you mean non-conformal (nodes are not shared by both the static and moving part) you can select the bodies in Design Modeler and form new part. This will ensure that the interfaces are all conformal. (If that was your question)
Note: if you choose to form one part from different bodies, the meshing process might be slightly different depending on how you mesh it.