It's not a problem if it has a callsign.
Squelch controls when your radio's speaker turns on. Without squelch, you'd hear constant static hiss whenever no one is transmitting. The squelch circuit mutes the audio until a signal strong enough to exceed the squelch threshold comes in — then it "opens" and you hear the transmission.
Your radio monitors the received signal strength. When a signal comes in that's stronger than the squelch level you've set, the audio unmutes. When the signal drops below that level, it mutes again. Think of it as a volume gate — weak signals and noise stay blocked, strong signals pass through.
Most radios have a squelch setting from 0 (fully open, you hear everything including static) to 9 (maximum, only very strong signals get through). Here's how to set it properly:
Tip: If you're expecting a weak signal (maybe a handheld calling from a few miles away), temporarily lower your squelch a notch or two. You can always turn it back up once you've made contact. Some operators open squelch fully when listening for emergency calls.
Regular squelch and CTCSS/DCS both control when your radio unmutes, but they work differently. Squelch is based on signal strength — any signal strong enough opens it. CTCSS/DCS is based on a specific tone or code — only signals carrying the matching tone open it, regardless of strength. Most radios use both together: the signal must be strong enough to pass the squelch and carry the right tone code.