pretty bad for sure. you're drawing with a gutshot and you don't have a deuce, and for two bets cold, facing a potential jam, which is what happened.
this is a spot you can hang in there with a wheel draw, but not the draw you have. in 2-7 you wanna be thinking about how live your outs are, who has the key cards, and what kind of low you're trying to make.
When you improve to a 1cd on the flop you should lead.
On the turn it would've gone 2:1:1 and then the two of you would've checked to the button who bets. If SB then doesn't raise you can proceed and if he does you fold for the 2 bets.