Squeezing and entanglement of a two-mode cascade laser, produced by a three-level atom which is initially prepared by a coherent superposition of the top and bottom levels then injected into a cavity coupled to a two-mode squeezed vacuum reservoir is discussed. I obtain stochastic differential equations associated with the normal ordering using the pertinent master equation. Making use of the solutions of the resulting differential equations, we determined the mean photon number for the cavity mode and their correlation, EPR variables, smallest eigenvalue of the symplectic matrix, intensity difference fluctuation, and photon number correlation. It is found that the squeezed vacuum reservoir increases the degree of the statistical and nonclassical features of light produced by the system. Furthermore, using the criteria developed by logarithm negativity and Hillery-Zubairy criteria, the quantum entanglement of the cavity mode is quantified. It is found that the degree of the entanglement for the system under consideration increases with the squeezing parameter of the squeezed vacuum reservoir.