Hi, new to the forum and rebuilding a 78 CB550. And no, this is not some perverted porn fetish thread

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Anyway, I put in a rebuild kit on my 78 CB550, I go to bleed the thing, and with the reservoir cover off, fluid squirts right out of the smaller intake pinhole port in the reservoir if I pull the lever in too fast? Is that supposed to happen?
On top of that, even after completely bleeding out all air out of the brake system, I am still able to pull the lever all the way to my handlebar, which was the case before and after the rebuild. Is that typical for these bikes? Every motorcycle I've ridden doesn't allow the brake lever to touch the handle bar, unless I give it an ungodly amount of force.
Any ideas? Is the squirting/lever to the handle bar normal?