Little orange squirrels are about half the size of gray squirrels. These small tree squirrels have fur that is gray-red in the winter and orange-red in the summer with a white belly. During the winter months, red squirrels will grow tufts of fur on their ears. When other animals enter their territory, they tend to chatter or whistle loudly at such invaders. orange squirrels, also known as pine squirrels, live in the colder northern states and prefer living in pine forests.