The simplest device that the microcontroller can use to turn to the valve on or off is a relay. One might think that a relay could be available that would expose a mechanical lever to which displays the state and allow the user to "manually" turn it on or off. However, the manual interaction wouldn't affect the current in the relay's magnet, so even if the manual action forced the relay's switch to the on or off position, that effect would be undone when the lever is released.
There is a device called a "latching relay" which switches based on a pulse of current to either the "turn on" coil or the "turn off" coil, after which it stays in that state. Such a relay could be made to expose a lever which would work as you want. However I don't see any such devices.
I think a reasonable solution would be similar to the other suggestions here: Given that the microcontroller already has the wherewithall to switch a relay, have it read a couple of local pushbuttons too, for manual on and off. (Could even be a center-off momentary rocker, if the rocking aspect is important. The LEDs could even be in the two rocker switch halves.).
I would also suggest that the microcontroller be able to read the actual state of the relay, so it can report that back to the http interface. You can either have it read the power going to the valve, or use a relay with an extra set of contacts.