The detection of kilohertz-band gravitational waves promises discoveries in astrophysics, exotic matter, and cosmology. To improve the kilohertz quantum noise-limited sensitivity of interferometric gravitational -wave detectors, we investigate nondegenerate internal squeezing: optical parametric oscillation inside the signal-recycling cavity with distinct signal-mode and idler-mode frequencies. We use an analytic Hamiltonian model to show that this stable, all-optical technique is tolerant to decoherence from optical detection loss and that it, with its optimal readout scheme, is feasible for broadband sensitivity enhancement.