It is a pistachio ice cream cone that looks like Squidward, with an ice cream face that is turquoise and a huge nose.
Role in episode
This ice cream cone is first seen when a kid cries about it being a flavor he does not like, which infuriates his father because his son asked for it in the first place. He accidentally tosses it onto Squidward's tanning bed. As Squidward leaves for a bus that takes him far away, SpongeBob mistakenly thinks he turned Squidward into the ice cream cone and attempts to protect it throughout the episode.