I do not see any difference in squelch 1 and 9 settings.
Squelch setting 1 will squelch moderate signals.
Squelch needs to be set above the noise floor to use the scan function.
WA9ONY BaoFeng UV-5R playlist:
https://www.youtube.com/watch?v=vCEGxGZFQdE&list=PLsnnFJeUhC7BjEAXEgCxt6cLnWRkfSC8R&index=1
http://www.stargazing.net/david/UV5R
73 David WA9ONY