I'm pretty sure you must be at least within 16 blocks (or 24, I'm not quite sure) from the spawner for mobs to spawn, but I don't think the distance you are from the spawner affects the spawn rate.
If you move more than 128 block away from the mob spawner, all hostile mobs including squids will despawn immidiately. Also the number of already spawned entities (within the radius of 9 blocks from the spawner itself) decrease the probability of spawning new mobs.