What a cross-threaded hose bib handle actually means
Your outdoor hose bib has a handle, a stem that the handle turns, and a valve body bolted to the pipe. When the handle spins freely, grinds, or won't tighten anything down, the threads connecting those parts have failed.
Most people call it cross-threaded, and sometimes it literally is: threads started at an angle and jammed. More often the threads are just stripped from over-tightening or corrosion.
The good news is this is one of the cheaper, more forgiving plumbing repairs. Low water pressure at that point, a small valve, and parts you can hold in your hand.
The key question is which threads failed. The handle screw, the stem itself, or the threads inside the valve body. Each one has a different fix and a different price tag.
Why it happens, from most to least common
The number one cause is the handle retaining screw. It's soft brass, it threads into the top of the stem, and it's the first thing people crank when the handle feels wobbly. Those threads strip fast.
Second is the stem itself. The long threads on the stem ride inside the valve body to raise and lower the rubber washer. Grit, corrosion, or forcing a stiff valve can cross-thread or wear them out.
A wrong or universal handle is a sneaky one. If someone lost the original handle and grabbed whatever fit, the center hole may not match the stem, so it rocks and feels stripped even though nothing is.
Freeze damage in cold regions can warp the stem or crack the body, and both make the handle bind in a way that feels exactly like cross-threading.
Least common is a corroded or over-tightened packing nut clamping the stem so hard it won't turn. Easy to test, easy to fix, and easy to misdiagnose.