Lime is a composite of calcium and magnesium compounds and is sold as agricultural lime, garden lime or ground lime. With few exceptions, these terms are largely interchangeable. All are made up of calcium carbonate (CaCO3) and are the safest form of lime for lawns. Burnt lime (CaO), also called caustic lime, works fast and can be dangerous. Unless recommended by a professional, caustic lime should not be used on lawns.
When the soil pH is too low, calcium and magnesium are not easily available to lawn grasses. Lime provides these important nutrients while raising the pH. Lime also can improve the health of the lawn soil. It increases microbial and bacterial activity necessary for healthy soil. This stimulation increases the porosity and tilth of the soil, resulting in a healthier lawn.
If too much lime is applied to a lawn, the pH can rise to levels well above 7.0. Most lawn grasses do best in pH between 6.0 and 6.5. When the pH rises above 7.0 with the exception of calcium and magnesium, many of the required micro-nutrients for proper grass growth and development become unavailable for the turf to effectively use, resulting in deficiencies.This can occur even if those micronutrients are present in sufficient amounts in the soil.
Lime should not be added to lawns as a matter of course. The only way to know for sure if your grass would benefit with a lime application and how much to apply is to test the soil. Do-it-yourself kits are available at most garden stores and will accurately tell the pH. Those test, however, will lack recommendations for how much lime to amend to the lawn. For that, send a soil sample to a private or university lab for professional analysis.