To ungroup the items, press the "Shift-Ctrl-G" keyboard shortcut. Hold down the shift key while selecting each object, then right-click one of the objects and choose "Group" from the context menu.
There isn't much of a difference in terms of technology. Both layers and groups serve the same purpose in the Illustrator artwork tree: they generate a parent object that can contain one or more child objects. The distinctions are in how they are applied in practise.
To select multiple layers and merge them into a group, hold Ctrl/Command and click on them. You can also select all of the layers in between them by clicking on one layer, holding Shift, then clicking on another layer. Then, on a Mac, press Ctrl+G to group the selected layers.
Click a layer in the Layers panel to pick it. To modify the order of stacked objects in the document, drag a layer up or down in the Layers panel.
The fundamental distinction is that Groups are containers, whereas Layers are separators. A group is a container for shaped items that are contained within a layer.
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