The larger diameter valve lets in air to keep the pipe from collapsing, and lets out large amounts of air as the line is filled. There is, a secondary small valve attached upper right, to release air that builds up as the air comes out of solution and forms small bubbles.
They are probably hidden in insulated little houses, or underground with just the vent pipe exposed. In Chicago, I would expect them to freeze if unprotected.
You would only see them exposed Ike that in warm climates. And even then you can have problems with them freezing. I worked for a water district in Las Vegas. There was a record cold day and night. We froze a bunch of them. And about a fourth of the irrigation valve manifolds in town froze.. Every body working for the District, including teh secretaries were sent out with valve keys to shut off the services to the houses and leave a card with the phone number for their plumber to call when things were fixed and they were ready for the water to be turned back on.
yes, even up here in Jacksonville, FL, the backflow preventer valves, and fire system water meters, to large buildings, are out at the street, sticking up in the air, with just plastic cladding around them for looks mainly....does not get cold enough here, for long enough, to freeze pipes.
When I lived n. of Dallas, TX, those would ALL have to be buried in a pit, underground....