All good advice - especially the part about how to distinguish whether it is entrained air from running with too little fluid, or water that has gotten into the hydraulic fluid. Either way, it is probably time to drain the fluid, change the filter and put in new fluid.
But first you obviously want to see if this is a leak that can be fixed by tightening the fitting and then adding fluid. That may well be the case.
To my eye that looks like a compression fitting - also known technically as a JIC fitting. Google it. Compression fittings do not have O rings or thread sealers. They rely instead on the shape of a cup/cone fitting between a hard cone and softer cup that are forced together by the pressure of the screw threads. This is really the best of all types of pressure fitting and is preferred for many applications.
It isn't unknown for them to loosen up from vibration, and sometimes they will fail from being so overtightened that some part of the mating sealing suface or the the outer nut itself will develop a hairline fracture from over-tightening.
To tighten it right is easy, you MUST be sure to use two properly fitting wrenches so that one will hold the longer section of the fitting stable to keep it from rotating - that's the part to the left in your photo. Then you use the other wrench to turn the part that is more to the right in the illustration. All (well, almost all) fittings and bolts tighten the same way i.e. tighening is considered clockwise if all the tubing didn't exist and you could you look at the fitting from the end.
Tighten it until you feel that all the play as been taken up, and then give it some compression by turning it another 1/8 to 1/4 turn. No more than that. It should seal then.
This type of compression joint can be successfully reused several time if it is carefully assembled and the mating surfaces kept clean before tightening.
Good luck,
rScotty