I have a 03 regular Escalade with bucket seats in the 2nd row and they recline back. I do it all the time when I am watching TV or playing X-box. Switch is located on the side of the seats closest to the doors.
To recline the seats, use the same handle that you pull after you pull the bottom up and want the top portion to lay flat. The handle on the outside of the seat. Pull it up, and push the seat back to recline.
I have an '04 with 2nd row captains. Not sure about the bench.
Oh, and be careful about how and who you allow to pull the handles. My kids stripped the inside of mine. It's made of plastic.