DreamsMaster: Water in dreams often represents our emotional state. In this case, a block of ice could represent hardened emotions. The fact that it turned to water when you went to pick it up implies that these hardened emotions are softening.
Think about what was on your mind the night you had this dream. Have you been feeling “cold as ice” toward someone or something, but now those feelings are starting to warm? This dream could represent a sense of healing taking place inside of you, emotionally and/or spiritually.
The symbol in the dream has more the value of a parable: it does not conceal, it teaches.
– Carl Jung, as quoted in C.G. Jung: Psychological Reflections