All the elements of Group 1 react vigorously with water to give metal hydroxides and liberate hydrogen gas, but this reactivity increases down the group.
Lithium's density is only about half that of water, so it floats on the surface and ultimately disappears, giving off hydrogen gas and forming a colourless solution of lithium hydroxide. But unlike the rest of the s-block elements, this reaction is not vigorous.
2Li(s)+2H2O(l)→2LiOH(aq)+H2(g)
Using Hess’s Law, we can split it into several theoretical steps with known enthalpy changes.
Li(s)→Li(g); ∆H=+ve
Li(g)→Li+(g)+e−; ∆H=+ve
Li+(g)→Li+(aq); ∆H=-ve
The reasons for the slow and non-explosive reaction of Li with water are:
As far as being less reactive than the Group 2 elements of the s-block is concerned, it follows the same logic. Be and Mg would have been exceptions as reactivity with water decreases across a period but they have a protective layer of oxide on their surfaces, so they react only at very high temperatures and are largely inert towards water.