Yah a bird but what is going on with the squirrel?

I actually was taking a picture of the bird. I noticed the squirrel, but, nothing unusually as they are always there and frankly I don't always pay much attention to them. But what is he handling now that I am viewing the pictures? I'm going to whatbird.com for their opinion. I think they have babies in my queen palm but the cardinals, mockingbirds and mourning doves have babies around too. Or is it even a baby, and just something that looks like something it isn't? Okay so far experts think we may have a baby squirrel or botflies. I need to pay attention more tomorrow and see if I see a injured or sick squirrel in my yard.