Squamous Epithelium is present on skin, lips, mouth, prostate, lungs, bladder, vagina, cervix and esophagus. Hyperplasia means enlargement. So Squamous Epithelial Hyperplasia means enlargement of the squamous cells of any one of above mentioned area. This can be benign or cancerous. Inflammation means swelling. You have not mentioned symptoms which you are having and can help me to diagnose the problem.