It's not a valve, but simply a Banjo fitting to which a tube is attached. It's purpose is to prevent pressure and vaccuum from building when the gear oil heats and cools. It's located on the top of the axle casing to the left of the differential, about a foot.
I don't know about D2, but Defenders, and I know my son's D1 XD has tubes which run from the axle breathers to a high point.
If you're seeing evidence of oil slung from the center of your rear wheel hubs, outwards, that's a pretty good sign your breather fitting, or tubes, have become plugged. The steel fitting that goes through the banjo, into the axle casing has a tendency to become plugged with rust, from condensation. Clean the area around the fitting with a wire brush, and blow any dirt/ residue away, before unscrewing the fitting, to prevent crap from falling into the axle housing.
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