No, it will not cause oil leaks.
The oil pressure sending unit is defective.
it could be your oil sending unit
Oil leaks will not cause an engine to heat or to seize. A lack of oil will cause it to get hot and seize which is caused by not checking the oil level and adding as necessary to keep it full. As long as the engine has the proper amount of oil it will run just fine. The leaks may cause a mess, waste of oil and money, but they will cause no damage to the engine.
A loose, improperly aligned or worn-out oil filter are common causes of car oil leaks. A loose or improperly threaded drain plug could also cause an oil leak to occur.
Other then they leak at times. NOTHING
It can be the sending unit is leaking or it can be a a leaking oil filter, oil drain plug, rear main seal, valve cover gasket, or any number of other leaks. Inspect the engine and find the source of the leak.
Oil sending units commonly fail over time from vibration. Most units have mechanical moving internal parts that overtime can get jammed or break all together. Its very common.
Defective oil sending unit, blown bulb.
Yes it could.
Only if it all leaks out.
It has several sending units such as a fuel gauge sending unit, oil pressure gauge sending unit, temperature gauge sending unit, need to know which one you are looking for.