The violation of Leggett-Garg-type inequalities (LGtIs) is studied on a two-level atom, driven by an external field in the presence of a squeezed thermal reservoir. The violations are observed in the underdamped regime where the spontaneous transition rate is much smaller compared to the Rabi frequency. An increase in thermal effects is found to decrease the extent of violation as well as the time over which the violation lasts. With the increase in the value of the squeezing parameter the extent of violation of LGtIs is seen to reduce. The violation of LGtIs is favored by an increase in the driving frequency. Further, the interplay of the degree of violation and strength of the measurements is studied. It is found that the maximum violation occurs for ideal projective measurements. © 2019 American Physical Society.