Albino squirrels have a congenital disorder characterized by little or no production of melanin. The lack of melanin makes the albino squirrel's eyes appear pink or red, the color of its blood vessels, unlike white squirrels who have dark eyes.

Most of the white squirrels seen in North America are genetic color variants of the Eastern Grey squirrel and are not albinos. They have completely white coats and dark eyes. These are leucistic animals which involves a partial loss of pigmentation that does not affect the eyes.