Sqvips are small creatures in Biomutant that looks like small squirrels. If you are collecting trophies or achievements, you will need to collect a total of 20 sqvips for the "Zoo-do" trophy / achievement.
You have a single quest that requires you to collect 5 sqvips for Gizmo as part of the main story line, but the remaining 15 have to be found elsewhere.
If you have not done Gizmo's quest to get 5 squips, do this first and make sure to search the area fully. It is possible for 7 or 8 squipz to spawn there in total, so keep searching even after you found all of them.
The remaining sqvips must be caught from random spawns. These creatures can spawn anywhere in the world as long as you are not inside, so keep an eye out for them. When you encounter one, go close to it and click on the action button (Y or Triangle) to catch it.
The squips have no set spawn point, but there are people that claim that they are more commonly found inside the Deadzone, so that's a good place to look for them.
As for strategies to farm them, your best bet is to just roam around the map while keeping an eye out for them. Since they just randomly spawn and have no set spawn point, there is no good strategy for farming them out besides just roaming the main map.
After you capture the sqvip, you have the choice between killing them and capturing them. This will not affect any trophies or achievements, but it will affect your Aura by either giving +1 to Light or Dark depending on your choice.