It is found by simply mining a Lapis Lazuli Ore with a stone pickaxe or better. When doing so, it will drop 4-8 lapis lazuli dyes, although this can be increased with the Fortune enchantment. This item does not to be further proceesed to be used, i.e. a furnace. Lapis Lazuli is able to be found at the same level as gold and diamonds and is about as rare as the former. Like most other ores, Lapis Lazuli appears in veins.
This item (in multiples of nine) may be used to make a Lapis Lazuli Block , used purely for decoration and/or compact storage of the dye. When applied to sheep , it will turn its coat blue and can be sheared infinitely for blue wool, assuming the sheep has grass to regen their wool. This is a much better way of dying wool than simply crafting the dye onto the block. As of 1.4.7, the Lapis Lazuli Dye can be used for tinting fireworks to a color that you want. Lapis Lazuli can also be used to dye your wolf's collar as of 1.4.2. And Now, On the 1.8 update, You require Lapis Lazuli for enchanting.
In real life, lapis is a medium hard stone used for making jewelry and as a pigment.
Lapis lazuli dye was going to be a crafting ingredient for the block crying obsidian , but neither the block nor the recipe were ever added.
Lapis lazuli is the only dye obtainable through mining .
In 1.2.5, when the pick block key was broken, if you used it on lapis lazuli ore you would get an Ink Sac , unlike if you tried on diamond, coal, redstone, gold, or iron. This is because lapis is a dye that it drops from an ore, and is a data value of the inc sack. This along with many other glitches were fixed in the 1.3 release.
Even though the dye is not renewable, applying once to a sheep and shearing it allows you to obtain blue wool, which is one reason for mining Lapis Lazuli.
After snapshot 14w02b they got a very important reason in Enchanting.