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With tiny targets like squirrels, I'd sight dead on at the exact range I expected to be shooting at. That might be 25, 45 or 75 yards depending on your terrain and cover.
Out here in the Rockies, I sight dead on at 75 yards for ground squirrels (which we do not eat). With Velocitors or WW Power Points, I'm about an inch or 1.5" high at 50 and about 3-4" low at 100. I can hold off either way for elevation. Wind is another matter!
Standard velocity ammo (to save edible meat) will have a significantly higher "arch" of trajectory. So sight in at your most common killing range, and then shoot careful groups at shorter and longer ranges to learn precisely what that kind of ammo does for you.
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