Can you knit squares for a blanket with 32 stitches on the knitting needle
Welcome to the forum!
Yes, you can do that. The size of the square depends on the weight of the yarn, the needle size that you’re using and the stitch pattern.
My needles are 5 1/2mm and the wool is arcriyil 8ply
That can work, size 9 needles and a DK yarn (22sts/4inches or 10cm). For my tension it would be rather light and lacey but your tension is probably tighter than mine. Usually, that weight yarn is knit on 3.75-4.5mm needles (US5-7) but you may not want that density of knitting.
Do a square with 32sts and see if you like the feel of the knit fabric. Then you can adjust the needle size until you get to a knit square that you like.
Which stitch are you using?
Are you using garter stitch?