No, if this valve shuts the water off ONLY to the outside spigot, then it SHOULD be a valve with a drain on the downstream side, like this:



The drain is the little knurled knob on the bottom of the valve that you can turn with your fingers, and it's purpose is to allow you to drain the water out of the pipe between the valve and the outside spigot IF the inside valve is leaking. Otherwise, water will flood that pipe, freeze and expand, and possibly cause that pipe to burst.

If the leaking valve only shuts off water to the outdoor spigot, your best bet is to open the drain and allow the leaking water to leak into a pail on the floor, thereby protecting the downstream supply piping.

Replace the valve with a ball valve in the spring, and if it wuz me, I'd get a ball valve with a drain on it too.



Always install valves with drains on them so that the drain is on the bottom. And, of course, the drain should always be on the downstream side of the valve.