Here is a free graphic showing three installation methods typically used for freeze proof faucets, however in cold climates terminating the connection inside an exterior wall will freeze.
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Might be more useful if it showed the valve cut-away to give some perspective to the valve not being on the exterior. Around here they go right through the poured foundation (4-6"). A side view orientation will show how the faucet handle is oriented to the spigot.
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You may consider changing the reference from a “faucet” to the industry-standard “hose bibb”.
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I think this is a much better illustration.
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Hose bibb or hose bib?