Do genital warts start under skin and make the top layer peel open then grow on top? i havent found any information suggesting this just wandering. read that they form on top of skin is this the way?

They grow out from the skin. They do not make an open wound (top layer peels open) first if this answers your question. By Wikipedia: "They are generally pink in color and project out from the surface of the skin"

It’s a virus (HPV) that comes from the outside to infect the first layers of cells of the skin. It stays in those cells, and makes the cells grow bigger and uglier, and form the cauliflower looking warts that are called “ condyloma” or genital warts. They don’t need to peel off to show up. They’re already there.