You can't have one string for land maps and one for space maps, sadly. And either way, you're most often not organized in squadrons in the first place, it's more like one squad for all bombers, one for all cap ships, and so on.
I'm in favor of calling squads fireteams, myself (because it fits the definition far better, that is, not because FH2 does it, and in fact I had the idea long before downloading the mod anyhow), but of course that'd clash really badly with the space maps. Maybe something more neutral would be better, like 'Unit'.
As for squad names, only the Rebels colour-coded their flight groups, so I'm against the idea. It'd also look a bit stupid on ground maps.
"One of the bitches actually gave birth while she was attacking, and her puppies joined in on the carnage."
--the awesomeness that is Boatmurdered.