There are 9 settings for the squelch threshold, but changing it doesn’t make a difference. Whatever the setting, the Baofeng wakes up at -129dBm on VHF, and -126dBm on UHF. Under normal conditions the default squelch threshold seems to be just right, but in a noisy environment this bug might haunt you.
The same is true for the VOX sensitivity. It doesn’t matter what setting you choose, the sensitivity stays the same.