We present first evidence for the Landau level structure of Dirac eigenmodes in full QCD for nonzero background magnetic fields, based on first principles lattice simulations using staggered quarks. Our approach involves the identification of the lowest Landau level modes in two dimensions, where topological arguments ensure a clear separation of these modes from energetically higher states, and an expansion of the full four-dimensional modes in the basis of these two-dimensional states. We evaluate various fermionic observables including the quark condensate and the spin polarization in this basis to find how much the lowest Landau level contributes to them. The results allow for a deeper insight into the dynamics of quarks and gluons in background magnetic fields and may be directly compared to low-energy models of QCD employing the lowest Landau level approximation.