The lice life begins in an nit (egg) which will hatch after 7-10 days. Then, they are nymphs (I call them teenagers) and it will take them around 7 days to grow into egg-laying bugs. Once reaching adulthood, lice can crawl around your head for around 30 days. In other words, the complete life cycle is around 30-50 days.
Harvard U. has great information page on head lice, which include the following lovely pictures of nits at different stages.
Once an egg is hatched, the removal of the egg shell is not necessary, but I do it anyway, because I would hate to miss something. As you can see, the nits even take on different colours depending on their stages. In my fair-haired son, nits can look quite dark. In a dark haired person, nits can look white. That's why I just pick every nit. Remember, nits can look like other things, but if the object moves, it is not a nit.