Excuse you but he absolutely gave the squid a bit of water, and is even levitating the poor thing in such a way that he's simulating the exact water pressure the squid will be used to. So, sure, the squid might be confused and perhaps even concerned, but Rick isn't going to kill it or anything. Unless he drops it, haha.

"Aww, what? It looked so bored down there. B-Bet it's dreamed of flying since it was just a, a little calamari. I'm not hurting it!"

The squid waves its tentacles, slapping a few against the castle stone.