The Death's Head Squadron was a terrorist commando composed of Gnobians who wanted to accomplish Baron von Strucker's greatest dream, creating a new Reich. Their name, Death's Head, was based on Strucker's personal commando during the World War II, the original Death's Head Squadron.
According to themselves, the Gnobians were a specie of aliens discovered by Baron von Strucker and Wilhelm Schmidt near the village of Gruenstadt in Germany, 1944. They helped Strucker building his future Hydra empire by giving him their advanced technology, which eventually led to the creations of the Life-Model Decoys and the Deltites.
It was eventually revealed that the events of Gruenstadt have never happened and that the Gnobians were advanced LMDs, unaware of their real origins and possibly had implanted memories, created by Arnim Zola under Baron Strucker's orders.