Making it "easier to cast" is relatively straightforward - it reduces the Magicka cost of the spell, meaning you can cast them more often.
This is similar to how things worked in Oblivion. (I'd link you to the UESP page documenting this, but the Site's still getting hit pretty hard from all the Skyrim traffic)
Each spell has a "base cost", which is modified by the following formula:
spell cost = base cost * skill multiplier * perk multiplier * equipment multiplier * dual cast multiplier
skill multiplier = 1 - (skill/400) ^ 0.65
This means that at 100 skill, spells cost 60% of the base cast (further modified by perks and equipment).
This isn't combat related, but as Affe has pointed out below, increasing your magic skills is required to buy high-end spells from vendors.
As you noticed, Destruction is pretty straightforward. Each cast and while continued casting, you will increase skill, but this has a caveat: only if you are attacking someone. If you're fizzling your spell in the middle of town, it's not going to increase it.
Alchemy is also straightforward: each potion created will increase your skill. As dpatchery notes, eating ingredients for effect determination will also increase your skill by a small amount.
With Enchanting, each enchant (or disenchant, as LessPop_MoreFizz notes) as will increase skill. dpatchery also notes that you can increase your skill by recharging items with soul gems.
Restoration, namely the healing spells, only increase skill if your health is below its maximum. The others only work if you're in combat or near hostile enemies: this includes spells like Steadfast Ward.
For summoning spells (essentially most things in the Conjuration school), you won't get a skill up for the summon until you enter the range of hostile mobs and, in the case of summoned creatures (like the Atronach and the Familiar), they do some damage. With bound weapons, entering range of hostile mobs is all that's necessary to gain Conjuration skill; however, using them in combat will increase their appropriate weapon skill, not Conjuration.
Alteration and Illusion spells that are targeted towards messing with hostile mobs need hostile mobs within range to skill up. Buffs, like Oakflesh, don't increase skill without hostility as well. Others, like Candlelight and Muffle, are recastable without hostility but only increase skill by a small amount.
Best Answer
If Tamara Wijsman's formula is correct, hp can be factored out of the formula. Also, there's a 12/100 factor I saw from uesp.
Which gives these values.
The
hidden armorin the formula is when wearing four pieces of armor (chest, head, hand, legs). If you are wearing robes or hood, or are missing feet or hands, thenhidden armoris less than 100 and you get less reduction. This reduction in reduction is not reflected in the displayed armor rating.Finally, damage reduction is capped 80%, so 567 is the maximum displayed armor rating that is useful when wearing four pieces of armor. 667 is the maximum displayed armor rating that is useful when wearing 0 pieces of armor.