To dream of a squid implies that something or someone is causing you anxiety. Perhaps you are faced with a dangerous situation, or you may not be able to see the truth of a matter clearly. Your perception may be influenced or manipulated by someone else. It may represent self-indulgence and gluttony. Everything must be your way and you are unwilling to bend to the needs of others.
To dream that you are eating squid means that you are concerned about what other people think of you. You distance yourself from others so that they cannot form negative opinions of you. This indicates that you are feeling self-conscious and worried how others perceive you.