Edge machine learning involves the deployment of learning algorithms at the wireless network edge so as to leverage massive mobile data for enabling intelligent applications. The mainstream edge learning approach, federated learning, has been developed based on distributed gradient descent. Based on the approach, stochastic gradients are computed at edge devices and then transmitted to an edge server for updating a global AI model. Since each stochastic gradient is typically high-dimensional (with millions to billions of coefficients), communication overhead becomes a bottleneck for edge learning. To address this issue, we propose in this work a novel framework of hierarchical stochastic gradient quantization and study its effect on the learning performance. First, the framework features a practical hierarchical architecture for decomposing the stochastic gradient into its norm and normalized block gradients, and efficiently quantizes them using a uniform quantizer and a low-dimensional codebook on a Grassmann manifold, respectively. Subsequently, the quantized normalized block gradients are scaled and cascaded to yield the quantized normalized stochastic gradient using a so-called hinge vector designed under the criterion of minimum distortion. The hinge vector is also efficiently compressed using another low-dimensional Grassmannian quantizer. The other feature of the framework is a bit-allocation scheme for reducing the quantization error. The scheme determines the resolutions of the low-dimensional quantizers in the proposed framework. The framework is proved to guarantee model convergency by analyzing the convergence rate as a function of the quantization bits. Furthermore, by simulation, our design is shown to substantially reduce the communication overhead compared with the state-of-the-art signSGD scheme, while both achieve similar learning accuracies.