Squelch and volume are resistor potentiometers and a voltage are feed to them and then the vipers voltage are sensed to determine how much the control have been turned. I don't know why there's a dead zone at the beginning, but can guess that the pot are feed 3,3volt and the lowest setting of the squelch or volume are 0 volt but the processor only detects voltages that begin at 0,5volt, so the first 15% are then not sensed.
Those are 10k pots and Uniden have set a 100 ohm resistor between pot and ground to raise their lowest setting a bit, 0,03V higher, but it probably needs to be replaced by a 1k resistor.
/Ubbe