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Well, bad, yes and no. In some ways it is -- it could potentially, in theory, spread pathogens if the birds had something infectious. It would attract flies and predators. It most likely could be against health codes if you're in a city or suburb (butchering might be illegal in some places, technically, but would they catch you, especially if you do it on a weekend, probably not).
OTOH, its another resource. If it were me, I'd just bury it along with the guts, pouring some in each hole. Blood is a great fertilizer for plants.
Some cultures use blood as a food source, since its high in protein and iron. Blood sausage and blood soup come to mind. Not my cup of tea, but some people like it.