3D single-photon LiDAR imaging has an important role in many applications. However, full deployment of this modality will require the analysis of low signal to noise ratio target returns and a very high volume of data. This is particularly evident when imaging through obscurants or in high ambient background light conditions. This paper proposes a multiscale approach for 3D surface detection from the photon timing histogram to permit a significant reduction in data volume. The resulting surfaces are background-free and can be used to infer depth and reflectivity information about the target. We demonstrate this by proposing a hierarchical Bayesian model for 3D reconstruction and spectral classification of multispectral single-photon LiDAR data. The reconstruction method promotes spatial correlation between point-cloud estimates and uses a coordinate gradient descent algorithm for parameter estimation. Results on simulated and real data show the benefits of the proposed target detection and reconstruction approaches when compared to state-of-the-art processing algorithms