Did these "squads" exist primarily for smaller scale combat and chevauchee type raiding? In a larger battle, would they have fought as a unit, or be broken apart and the crossbowmen sent off to group up with other crossbowmen?
Hi there, glad you asked something about my specific reenactment scene! I'm more into the 1470's wars though, so my answer is going to be more focused around that era.
For your first question, the context of creation of the Ordinances comes from a time when armies lacked organisation and discipline. in the late 14th and early 15th century, Abuses and pillages were common from an army on the march, even within the army's territory. To top that, during the Hundred Years War, the French heavily relied on mercenary bands. In time of acalmy, they would stop being paid. To keep a reason of existing, those mercenary troops would pillage and ransom cities for loot.
To counter this, the French understood that they would need to create a permanent professional army, and that they would need to create a well organized army. To do so, they created the Compagnies d'Ordonnances, which basic unit was the Lance. Years later, the Burgundians took the same system, and added several type of soldiers such as the gunners.
So, the goal of the Compagnies d'Ordonnances (and the Lances) was to organize the army, by regulating the equipment, the pays, the rules, etc that the units would follow. By creating a better organization, they could create a better cohesion that is needed and relatively less trouble when marching.
Now, let's go take a look at your second question.
Unfortunately, we do not know much about the specific battle organisation of the Burgundian army. One could only make assumptions or base himself on the few writings we have on this matter.
Before getting into the subject, I think it's important to remember of who the Burgundian Lances were made of.
Would the lances have fought as a unit, pikemen on their own would not be very effective, it seems more likely that they would be into specific formations.
Let's see what does the Burgundian Ordinance of 1473 tells us about battle formation.
To make the soldiers good and used to the weapons, and to make them experienced when needed, the Duke orders to all Conductors, Squad and Chamber chiefs, when they will be in garrison or when they will be able to do so, bring sometimes some of their men, equipped sometimes only with the upper armor, sometimes in full armor. They will teach them to ride together, and to stay together tightly, to charge quickly, while keeping their banners, to disperse when ordered, to rally while protecting each other in a way to hold a charge.
The same officers will also bring to exercise the archers and their crossbowmen, to make them used to dismount together and make them walk forward behind their back by tying the reins of three horses on the Homme d'Armes' servant's saddle. They will also train them to walk forward, to shoot without breaking formation.
They will make the pikemen move forward, in a tight formation in front of the archers. They will get the pikemen used to kneel when ordered, keeping their pikes lowered to the height of a horse, so that the archers may shoot over them as if they were behind a wall. Should the pikemen see the enemy get disorganized, they shall be ready to run after them, when ordered
The main information we get are that:
With that information, we can answer your question. While the lances would be broken up for battle in order to create units based on their type, there still was a concept of keeping a structure based on the Lance within these units. By pairing the Coustilliers and the Hommes d'Armes, the Servants and the Archers, you create within your battle units a sense of relative cohesion, as men would fight with other men they know and are used to work with, as they are in the same Lance.
Reading the original Ordinances truly is a goldmine when it comes down to Burgundian organization of the Armies. I unfortunately don't know of any English source for the complete Ordinances, but if you can read French, I'd highly recommend taking a look to the website Legio Burgundia, which has the transcription and translation to modern french of the Ordinances of 1471, 1472 and 1473.
Hope this answer helps, don't hesitate to ask for more!