No need for any shutoff valve...
If the toilet is pulling air through the sink, just put a plug in the sink when needed.
To answer your question:
i have a thru hull inlet that feeds the supply side of my head. Inline with that hose is a T fitting that also connects to the drain in my head for for the sink, so that when I flush on the head, it would pull any water in the line from the sink, or it would also drain via gravity back out via the thru hull. My question is simple, is this the proper setup?
That's not how Catalina plumbed it, but teeing the head intake line into the head sink drain line is a great way to do it 'cuz it provides a safe source of fresh water to rinse the sea water out of the whole system, or even flush using fresh water.
However the PO who did install it, kinda overdid it. There's no need to keep the head intake connected to TWO thru-hull--the original head intake AND the sink drain. So I'd replumb it to take the head intake thru-hull out of the mix entirely...you can remove it and glass it over or use it for a washdown pump or any other purpose you like. All you need to do is tee the head intake line into the sink drain line just ahead of the thru-hull. That's it...that's all the plumbing needed. Flushing the toilet will pull in sea water, although you'll prob'ly still need the plug for sink. When you close up the boat at the end of a weekend aboard, after you've closed all the seacocks ( you DO close all the seacocks, right?), fill the sink with clean fresh water...do NOT put the plug in the sink...it'll fill up 'cuz the drain line is closed. Flush the toilet. Because the thru-hull is closed, the toilet will pull the water out of the sink, rinsing the sea water out of the whole system so it won't sit, stagnate and stink.
For your next project, you can get the tank vent line out of the rail stanchion and connected to a real thru-hull that can let you backflush the vent line every time you wash the boat, preventing it from becoming blocked.