Female dogs squat to pee for the same reason women sit on the toilet when they tinkle, unlike men who prefer to stand up. It all boils down to a matter of comfort. However, don't just assume all female dogs squat. In the dog world, there are never black and white scenarios, but lots of shades of grey. You'll therefore occasionally stumble upon the revolutionary female dog who will raise her leg to pee in a male-like fashion.
