Water Softener Question

Yes, that is the regeneration cycle. You have to fill the tank with salt occasionally as well, as it is a salt solution that is used for that cycle.
mine regens every 3-4 days ,have it set to do that at midnight then it runs it's course and all is good...but it doesn't leak anywhere
So long as its not spewing water at the arrow location, and actually is running down the hose to the drain, it is likely working as it should be. Our softener regens are demand driven - they use way less salt than timed units.