We study the geometric phase of an open two-level quantum system under the influence of a squeezed, thermal environment for both non-dissipative as well as dissipative system-environment interactions. In the non-dissipative case, squeezing is found to have a similar influence as temperature, of suppressing geometric phase, while in the dissipative case, squeezing tends to counteract the suppressive influence of temperature in certain regimes. Thus, an interesting feature that emerges from our work is the contrast in the interplay between squeezing and thermal effects in non-dissipative and dissipative interactions. This can be useful for the practical implementation of geometric quantum information processing. By interpreting the open quantum effects as noisy channels, we make the connection between geometric phase and quantum noise processes familiar from quantum information theory. © 2007 EDP Sciences/Società Italiana di Fisica/Springer-Verlag.