Based on the time-convolutionless master-equation approach, we investigate the squeezing dynamics of two atoms in dissipative cavities. We find that the atomic squeezing is related to initial atomic states, atom–cavity couplings, non-Markovian effects and resonant frequencies of an atom and its cavity. The results show that a collapse–revival phenomenon will occur in the atomic squeezing and this process is accompanied by the buildup and decay of entanglement between two atoms. Enhancing the atom–cavity coupling can increase the frequency of the collapse–revival of the atomic squeezing. The stronger the non-Markovian effect is, the more obvious the collapse–revival phenomenon is. In particular, if the atom–cavity coupling or the non-Markovian effect is very strong, the atomic squeezing will tend to a stably periodic oscillation in a long time. The oscillatory frequency of the atomic squeezing is dependent on the resonant frequency of the atom and its cavity.