The noise is naturally made by the lever disengaging the 18 position ratchet and is nothing to be concerned about. To reduce the noise, lean back while lowering the footrest to take pressure off the ratchet system.
From time to time the handle can work loose. To tighten, use a size 3/16 inch Allen key and turn the grub screw in the bottom of the handle clockwise until tight.
The back on LA-Z-BOY recliner need to be locked in place properly. Please see instructions provided for direction. This is the most common reason for a squeaking back. If the back continues to squeak after following the instructions, please contact the store from which the chair was purchased.