Don't think there is such a thing as squelch (as compared to analog am/fm) with digital signals. It's up to the receiver design, filtering out noise to maximize signal to noise ratio, and antenna.
I have a D-star radio that has a squelch but I think it only works in analog mode (FM), doesn't seem to do anything when in digital mode.
Digital tuners will keep trying and trying, even if it means sending back garbage. At a point the mpeg decoder will cop out and no amount of error correction will be able to restore that data. You'll see pixelation or worse no video.
It's not really a squelch, just not enough usable data to display video or audio.
Once below the 'digital cliff'* there's nothing one can do in the way of recovering the data.
If in the very small region just above the 'cliff' expect heavy pixelation. As signal level increases you may see it, with regular pixelation or 'freezes'. Then finally enough for solid 'lock'.
*""a point the mpeg decoder will cop out and no amount of error correction will be able to restore that data.""
Only representation one may see of such a weak signal may be with a spectrum analyzer.
Firmware adjusts the threshold of the tuner/demodulator/processing circuits. For instance, the receiver may require a specific SNR/BER to initiate a process. Part of developing accurate scanning and service logging on a digital receiver is to fine tune the process to ignore actual noise and process only potentially valid signals. This would be the digital equivalent of squelch.