Very small bubbles in water will initially be dissolved air coming out of solution and nucleating into bubbles, then as turbo and Russ indicated, the rest is liquid to steam transformation as the liquid reaches the boiling (saturation) point. As energy enters the liquid, the temperature will remain constant because the energy goes into a phase change (assuming the pressure remains constant).
Vapor bubbles will nucleate in the small imperfections in the surface of the pot/kettle.