Both GPL and LGPL allow creation of derived works. Both disallow distribution of such works unless the code is available.
The difference is in the definition of derivative work. For GPL, linking to code (statically or dynamically) is considered derivative work.
For LGPL, dynamic linking is not considered a derivation. When static linking is used, LGPL is a unclear to me. Apparently, you must provide the code that links to the library in such a form that allows re-linking to different version of the library (object files?). It may be that in the case you modified the library, you must provide the applicatiuon that links to it in a form that makes debugging of library possible (source code?). Like I said, I am a bit unclear there.