A character that is bleeding takes damage every round from the wound causing the bleeding. The bleeding will not stop or reduce in severity unless the wound is reduced to a level 1 wound or taken by an empath using the TRANSFER verb. Tending the wound or using the Council of Light signs Sign of Staunching or Sign of Clotting, however, will temporarily stop the character from losing hit points.
It is possible to bleed from a level 1 wound. In such case the only way to stop it from bleeding is to heal it down to a scar or to have an empath transfer the wound to herself. The only way one will bleed from a level 1 wound is if the adventurer pulls out an arrow or thrown weapon after healing the initial wound to a scar.