GOOD GRIEF... I tryed backing ip to correct several "typos", and posted the message THREE TIMES. Here's the corrected version: YES, it should "beep". NO, it does not indicate a bad coil. With the breaker points OPEN, the coil's primary winding is connected to ground at one end, and the points/condensor at the other end, so the meter WILL show conductivity to ground, through the coil's primary winding, to ground. It is IMPOSSIBLE to accurately evaluate the condition of a coil with an Ohmmeter. Yes, an Ohmmeter will catch a DEAD short, but even one shorted turn in one of the coil's windings will greatly reduce spark output. Coil are tested with a machine that RINGS them with an AC current, and displays the condition of the coil depending upon how it RINGS (oscillates). Think of a "good" coil as a bell that rings brightly when struck. A "bad" coil is much like a cracked bell that gives a dull "thud" when struck, instead of a bight note. A shorted or partially shorted coil acts the same way, electrically, and that is what the coil teater displays as coil condition.
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