1997 Ford Escort brake squealing question

Inner and outer pads are usually different and can't be switched. When they are the same the ones with the squeakers typically go on the outside. Putting them on the inside will not hurt anything but the wear indicators usually would interfere and not allow the pad to fit properly.

Regardless which side the wear indicator is installed on, it won't make noise unless the brake lining is worn down. They commonly stop making noise when you apply the brakes because the pads are forced to straighten out and that pulls the squeaker away from the rotor.

Axle seals can make a squealing noise too but it's usually louder than a brake wear indicator. My minivan has been doing that off and on for the last two years.

There is a tool you might be able to borrow or rent from an auto parts store that borrows them called the "Chassis Ear". It is a set of six microphones, a switch box, and headphones. You clip the microphones to suspect points, then drive around while listening with the headphones. You can move the microphones around to zero in on the source of the noise. Be aware that many mechanics have never seen or even heard of this tool. Suspension and alignment mechanics use it to find rattles, squeaks, and other noises.