I think the default Squelch for the SV-COM-C25/X83 is 50%.
Increasing Squelch (in all radios) means that more "energy" (stronger transmitted, or received radio signal) is required before the squelch "opens" and you can hear the audio.
DEcreasing squelch means that less energy, a weaker signal (including noise) is required before the squelch "opens" and you can hear the audio.
Setting squelch is unique to each aircraft / radio unit / operator preference. You don't want to not miss any (significant) transmissions; to catch EVERY transmission, no matter how weak, set Squelch at 0... but then you're listening to noise whenever someone isn't transmitting a strong signal.
But you also don't want the squelch opening (annoying you) on noise and weak transmissions not intended for you. If you set Squelch to 100%, only the very strongest signal (like the tower transmissions while you're sitting on the airfield).
So... tweak between 0 and 100 until you have an acceptable compromise.
I noticed that I was having a hard time hearing some of transmissions of other aircraft while practicing touch and go's this weekend and believe it is a com squelch setting issue. Squelch in the system com setup was set at 70 so I dropped it down to 50. I have not had a chance to retest. I assume I needed to set lower value and not higher value? Also, what is the default com squelch value? This system was already installed in the recent airplane I purchased and do not see the default value listed in the Skyview pilot guide or install manual.