I posted this awhile back on this thread:
http://www.x-h2o.com/threads/1121
Squish is basically a "ledge" projecting beyond combustion chamber area.
As the piston approaches the ledge, a rapid squeezing action is applied to the air/fuel mixture contained in the area between the piston dome and the ledge. This squishing action forces the trapped mixture rapidly into the combustion chamber area, creating a greater mixture turbulence. Additionally, the small volume and large surface area of the squish band allow a better cooling of the end gases to help prevent detonation.
The squish clearance can be measured by inserting a piece of resin core solder(no acid core!) into the combustion chamber, rotating the engine through Top Dead Center, removing the solder and measuring the thickness of the compressed solder.