This is actually a feature of the radio (and most others). Essentially, ALL radios nominally mute the background noise that exists on all radio frequencies and aren't receiving when there isn't a strong signal coming in. So when you're not talking and there isn't a strong radio signal in range, you SHOULD hear silence.
Occasionally, you may have reason to want to hear a very weak signal - perhaps a very faint wx report, or a far away aircraft that you're trying to hear, etc). So most radios have a feature that temporarily removes the squelching or silencing function of the radio and lets you listen to whatever is on the frequency (usually static - thank the universe for that). With our radio, you do this by briefly pressing the volume knob. When you're in this mode, you see RXSQ on the display. You'll also hear everything that is coming over the radio frequency, static and all (there's always static there).
In other words, normal "stand-by" is when the radio isn't showing the RXSQ symbol, not when it is.
We might be misunderstanding something, but it sounds like it's operating normally.