It is designed to look like Squidward Tentacles, just that it is put together with a metal costume (having screws around the body) and the fact that the mouth has lights that flash whenever it speaks.
Role in the episode
The robot is placed in the Krusty Krab boat counter after the restaurant becomes a museum as a result of Frozen Krabby Patties' rise to popularity. His speeches exhibit love for his job, which is nothing like the real Squidward's, who finds the robot counterpart to be out of character.
It is later deactivated and seen scattered around in a junk pile along with other objects from the Krusty Museum after the Krusty Krab reverts to its previous state.