Yes, it can easily be fixed. You need to replace the rubber washers inside. I suspect you will probably have to replace the "O" rings also. Turn the water supply to the spigot off. There should be a valve inside the house, near the spigot to turn it off. Don't turn the main house power supply off because if something goes wrong during the repair, you're now stuck with having to fix it instead of taking your time. Then, open the valve about half way and undo the cap and remove the knob. Then remove the fitting just below the knob and pull the stem out. At the end of the stem is a screw holding the rubbber washer on. You'll also see the "O" rings on the stem. Here's where it gets trickey....from what I see so far, you'll have a heck of a time getting the cap off without chewing up the screw. If you get it to loosen, your next challenge will be loosening the nut fitting. Then move down to the nut holding the stem in. Once inside, you may find the screw holding the washer in may get chewed up as you attempt to remove it. Most washer kits (can purchase anywhere, even WalMart) have replacement screws in them. Put the same size washer in the seat and the "O" rings on and start reassembly. You may find the seat is also chewed up or at least chipped. This negative stuff mentioned isn't to intimidate you, just let you know what you may expeience. It's an easy job and if you have the tools, you can do it. Once you've done one, you'll see how easy it is. Doing it for the first time may seem cumbersome. Normally, it's a 5 minute job if there are no extenuating circumstances. You can also just replace the whole spigot. Unthread it from the pipe using a pipe wrench and the right sized wrench for the spigot, put some teflon tape or pipe dope on the threads and put the new one on. They don't cost that much, around 10 bucks.

The tan knob at the top looks like the vacuum break. Here's what I would do at this point... I'd turn the water off at that shutoff, and then replace the entire assembly (frost proof sillcock). You can get the whole thing for $30 at big box hardware. Note that if you go this direction you need to unscrew the sillcock from the copper pipe while holding the copper pipe from turning (so two wrenches). Frost proof sillcocks come in various lengths - match what you have. Also match the end that connects to the plumbing (is probably 1/2" male threaded). While you are there at the hardware store you will need a small roll of teflon tape to wrap on the pipe threads before you assemble again to prevent leaks. You will also need a can of "Great Stuff" or similar foam. With the new sillcock connected and properly in place, foam the opening around the sillcock from the inside so it's sealed up and keeps out air, bugs and critters. You don't want foam outside, so the new sillcock should be positioned tight against the house. If foam does get outside, don't mess with it until it's dry... then cut it / clean it up.

you might want to just buy one.. and fool around with it.. now that i think about it... i think i elevated mine ... so that the spigot was high enough.. that i could get the watering can under it ... thats how it all started ... and even then.. when the water got down too far.. it barely dribbled out the spigot ... it wasnt seconds to filling a watering can ... i grew up in metro detroit... canadian club whisky barrels were sold locally ... boy.. breaking that thing open.. was spiritual ... if you get my drift. .... lol ... https://duckduckgo.com/?q=canadian+club+whisky+barrels&t=ffcm&iax=images&ia=images i had to literally cut thru whisky sodden top boards.. to open it up .. i seem to recall ... it took a couple days with a hose running in them.. to seal them back up ... though i presume you are going all plastic ... you may also have to deal with squeeters ... that was one of the reasons i started leaning toward 5 cent feeder gold fish in the tank ... which then lead to a submersible pump to circulate the water ... and then figuring out how to not suck the fish out ... which eventually led to just making a fish tank out of it ... also ... i agree with all the comments of the dead weight of standing water ... plus dont forget all the furniture... peeps.. etc ... physics dictates.. there is a breaking point ... be careful ... ken

If the faucet leaks from around the handle just when the water is turned on, the stem packing may be leaking. In some cases, you can fix this by simply tightening the retaining nut that's under the handle. Remove the screw in the center of the handle and pull the handle off. Try tightening the nut slightly (Photo 1). You'll have to experiment to see which direction to turn the nut, since some faucets have reversed threads that tighten counterclockwise. https://www.familyhandyman.com/project/how-to-fix-a-leaky-faucet-frost-proof-faucet/ #3 on the diagram is the location of the packing nut. (retaining nut). Obviously, the diagram is for a different spigot but it shows where/ what the packing nut is--the hex thing just under the handle.