Yes. Many babies are born with an umbilical hernia, a small, internal opening in the umbilicus which causes the belly button to protrude. These are not painful and are not dangerous. They do tend to become larger when the child's belly is full or when they are crying. Most of these close on their own by 5 years of age.
Outie. Are you referring to a long umbilical stump? The amount of skin above the level of the abdomen, varies baby to baby. As the stump dries out, the skin will remain, and in those who have a longer section of skin will likely have a belly button that sticks out, "outie". Some belly buttons that stick out are umbilica hernias-some regress in childhood, larger ones may need surgery.