A disk drive is disclosed comprising a head actuated over a disk comprising a plurality of non-circular servo tracks for defining a plurality of substantially circular tracks. Each non-circular servo track comprises a plurality of servo sectors defining a plurality of servo wedges. The head is positioned at a first offset relative to a first circular track and a relationship of servo bursts for each servo wedge is first generated. The head is positioned at a second offset relative to the first circular track and the relationship of the servo bursts for each servo wedge is second generated. For each servo wedge, a selection is made between the first generated relationship at the first offset and the second generated relationship at the second offset, and the servo bursts at the selected offset are evaluated to generate a track squeeze indicator.