Cycling your battery from time to time may or may not be a good idea (I don't personally do it), but Li-Ion batteries (which almost all laptops from the last 5+ years use), as opposed to NiMH & particularly NiCd batteries, don't really ever need to be drained as far as I know.
Nickel-Cadmium (Ni-Cd) batteries definitely should be fully discharged before use as they are very prone to the "memory effect" where the total capacity of the battery is reduced each time the battery is recharged. I wouldn't be surprised, though, if no laptops using only NiCd batteries have been produced in the last decade.
Nickel Metal Hydride (NiMH) batts aren't nearly as affected by the memory effect, & Lithium Ion (Li-Ion) batteries (which are the latest & best technology for laptops) don't suffer from it at all. Their life will still get shorter over an extended period of time, but not because they aren't getting fully discharged.
kickycan wrote:Does the battery just lose power slowly without any use?
They can. NiMH batteries in particular are susceptible to this, typically losing about half their charge after a month of non-use.