Only a Squad Leader can edit the name of his Squad. For your Soldier to be able to act as a Squad Leader, he must reach rank 6.
After reaching rank 6, a Soldier can create his own Squad by Inviting Friends (see how to add friends here).
Your friends must of course accept the invitation before they are added to your Squad.
Once the Squad exists, you will have the option to rename it. This name is stored on your profile so don’t need to reenter it every time you squad up.
Important Note: the same rules apply to Squad names as everywhere else; insults and references to war criminals are not okay and can result in immediate bans.