We study squeezed states of phonons, which allow a reduction in the quantum fluctuations of the atomic displacements to below the zero-point quantum noise level of coherent phonon states. We investigate the generation of squeezed phonon states using a second-order Raman scattering process. We calculate the expectation values and fluctuations of both the atomic displacement and the lattice amplitude operators, as well as the effects of the phonon squeezed states on macroscopically measurable quantities, such as changes in the dielectric constant. These results are compared with recent experiments.