I don't know that any beeswax wouldn't be food grade, unless it was unfiltered.  I've heard of unfiltered beeswax, but I've never seen any at a store.  The filtered natural beeswax is a nice honey-yellow.  They also sell bleached beeswax, which is white, and I don't know that I'd want to use bleached beeswax for lip balm, etc, but then I wouldn't buy bleached beeswax for anything!  I like the natural color.  I guess maybe people like that if they're going to dye it and it's easier to dye from white.  Anyway, it's sold in beads or blocks (or the rolled sheets).  You can use the beads just the same as the blocks.  It probably would melt faster!  I bet they sell the beads for the smaller uses–easier to measure out a bit from beads than cutting off blocks, so just the convenience factor, I figure.

You could use the blocks for lip balms etc.  I think it's just how it's placed for sale to the consumer.  Since the beads would be easier to measure out in small quantities, they put the beads in the spice section and the blocks with candlemaking supplies, but you could use either.  The blocks come wrapped, sealed, so they're clean, too.  I've used the blocks for lip balm.  But I also use beeswax for candles, so I don't mind cutting off the blocks.  I'm used to cutting off wax anyway.

You can order it online.  Or, they do have it at Michael's at Corridor G.  I don't think I've seen the beads there, but they have the blocks.