The atomic pseudospin operators describing a two-level atom, and obeying the SU(2) Lie algebra, can exhibit reduced quantum fluctuations (“squeezing”) in certain states of the atom. These states include both pure and mixed states of the atom. Parameterizing the atom by the spherical polar components S, θ, and ϕ of its pseudospin vector S, we determine the parameter ranges in which squeezing can occur and the magnitude of this squeezing. We illustrate our considerations by examining two models, namely, the coherent-state Jaynes–Cummings model and the optical Bloch equations, in which mixed-state SU(2) squeezing arises dynamically.