Put a block of anything into the hole that the lava is coming out of and it will stop. Works with water falls also.
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When water meets a lava 'block', the lava is converted into an obsidian block. If water meets 'flowing' lava then the lava is turned into cobblestone.
Press Q. This will drop what you are holding. If you want to get rid of it permanently, drop it in lava.
You need a bucket to pick it up. XXX YXY XYX X = empty spot Y = iron ignot Once you craft a bucket, you can left click the source block to put the lava in the bucket Note: You can't pick up the flowing lava, you need the full block that the lava is flowing from. Or if you have lots of rocks from mining go to the very edge of the object you are on and place a block of rock on that area. keep on clicking until the surface of that area is filled with a block. Just be sure to not fall in.
If you have a bucket, manually dig around underground until you find lava, then get reasonably close with your bucket and right click. Your bucket will fill with lava. Move back to your place, then rightclick on a block to place that lava. Be careful, as the lava you place will being flowing down. Also, lava burns close-by wooden things.
You can find lava underground.