star - Why does squinting make hard-to-see objects clearer?

Squinting works the same way as a pinhole camera.

Ideally, light from a single point source entering your eye anywhere on your pupil will be focused on a single spot on your retina. But this works perfectly only if you have perfect vision; otherwise light entering near the top of your pupil may be directed to a slightly different spot on your retina than light entering near the bottom.

By squinting, you block out some of the light from the edges, effectively making your pupil narrower, creating a sharper but dimmer image on your retina. (You may find that it improves the vertical resolution more than the horizontal resolution.)

If you happen to be nearsighted (as I am), you can see a similar effect by looking through a small pinhole, or through a small aperture made with your fingers. If the light is bright enough, you'll see a dimmer but sharper image.

The irregular shapes may be interference from your eyelashes.