Question about icon over squad members' heads

[the_hunger]

What do the litttle blue and white icons (badges) that sometimes appear above your men's heads mean? Does it mean they have received the maximum upgrades or something? Thanks in advance.

[TBS]

I assume you mean the icons visible in this screenshot:

http://img47.exs.cx/img47/2938/relic00606.jpg

they are to indicate that the unit in question is in cover and so will take less damage.

[the_hunger]

Yep, that's it. Thanks!

[Worf]

will take less damage. from ranged attacks. Melee is not affected by cover.
Just a sidenote ;)