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 atomcavity 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.