Macroscopic surface morphology and balling mechanism of AZ61 magnesium alloy prepared by Selective laser melting (SLM) have been investigated. This article studied and analyzed the surface morphology and balling phenomenon of Mg in the laser processing from the aspects of Mg inherent metal properties and laser processing. In terms of laser processing, the results show that, in the direction of increasing scanning speed, the energy density decreases, and the phenomenon of balling and porosity on the surface of the magnesium alloy is serious. When the energy density is 133.9–187.5 J/mm3, balling particles are significantly reduced. It can be seen from the low-magnification SEM image that, even at a scanning speed of 250 mm/s (Ev is 187.5 J/mm3), there are still a few small-sized balling particles on the surface. Therefore, in terms of inherent metal properties, the wettability, capillary instability, thermodynamic, and kinetic analysis of the balling behavior of Mg and other metal (Al, Fe, Cu, Ni, Ti) droplets in the SLM process has been carried out, and the dynamic model of magnesium droplet spreading/solidification was established basic on the result of experiment and metal inherent properties. The results show that SLMed magnesium alloy is a competitive process of melt diffusion and solidification. The final result depends on the intrinsic properties of the magnesium alloy and the applied laser processing parameters. The spreading process of Mg melt is very fast. Although the solidification time of Mg melts changes slowly with the increase of metal droplet temperature, the spreading speed is still very fast due to the low melt density, so the balling phenomenon of SLMed Mg can be controlled to a certain extent. Theoretically calculated, the solidification time of Mg melt droplet is longer than the wetting time at 1173 K (900 °C), so the spreading process is dominant, which can minimize the balling and realize the densification of SLMed Mg. The dynamic spreading of molten pool, the analysis of wetting and solidification process, and the establishment of SLM balling model can provide reference for the design of the SLM forming parameters of Mg and other different metals.