We present and analyze an effective scheme for preparing squeezed spin states in a novel spin-mechanical hybrid device, which is realized by a single crystal diamond waveguide with built-in silicon-vacancy (SiV) centers. After studying the strain couplings between the SiV spins and the propagating phonon modes, we show that long-range spin-spin interactions can be achieved under large detuning condition. We model these nonlinear spin-spin couplings with an effective one-axis twisting Hamiltonian, and find that the system can be steered to the squeezed spin states in the practical situations. This work may have interesting applications in high-precision metrology and quantum information.