I do not want to enter an unlock code in my iPhone every time I pick it up to use....how do I disable it.

You do not have to disable the passcode lock feature to avoid having to enter the passcode every time you pick up your iPhone. In iOS 7.1 look at Settings > Passcode > Require Passcode. This time can be set to a much longer time than the Auto-Lock time set in Settings > General > Auto-Lock. For example, if Auto-Lock is set to 2 minutes and Require Passcode is set to 15 minutes your screen will turn off after 2 minutes of inactivity, however, if you pick up your iPhone after 10 minutes you will not have to enter a Passcode.

You still get the security of a Passcode but you don't have to enter a Passcode nearly as often.

You disable it the same place where you first enabled it.

Settings - passcode

or

settings - general - passcode.

In iOS 7.1

Settings->Passcode->Turn Passcode Off

in previous versions:

Settings->General->Passcode Lock->Turn Passcode Off