Does the bleeder valve discharge into the tank or on the ground?

[Dale_K]

I've never totally understood the bleeder valve. I know it's providing a path to get the air out of the front radiators when refilling the system but I don't know how it's plumbed on the outlet, or discharge side.

My new coolant tank holds pressure very well but I'm getting a coolant smell and a steam bath feeling around the rear of the car. I can't find a leak and there's no coolant on the garage floor. So I'm trying to think of anything that could be causing it and wondering about the bleeder valve. It's brand new because it's included when you get a new tank.