Squid does contain iodine. Generally, seafood is a rich source of iodine, and squid is no exception. Iodine is an important trace element that promotes your growth and development. It helps to maintain your energy level. It eliminates toxins from your body. Eating squid regularly can help you get healthy skin, nail and hair. Squid is an excellent source of omega 3 fatty acid too. You can eat it, even if you have iodine allergy.