Hello Dreece1952 and welcome to TBN,
are you new to the use of this tractor? does it have 2-or 3 speed PTO,
are you able to change between pto speeds either High or low?
My 1700 has 3 speed PTO and sometimes I find it difficult finding neutral between 1st & 2nd speeds, I'll usually overshoot 2 or 3 times before finding it, and I use the PTO all the time

Takes some getting used to finding the right location,
to answer your question will it damage to keep using? you are of course talking about using the tractor with no PTO driven implement, Right!
If it does happen to be locked in then there is certainly a problem and should be addressed, But occasional use of the tractor should not be a problem until you can get it repaired , just be aware that the PTO shaft will be spinning always and could cause potential hazard to anyone might come up to the rear of the tractor while its running,