How do I earn medals to award my squaddies?

Solution 1:

According to the Ufopedia each medal is received in a different way, and there is a limitation on the total number of medals of each kind you can have on your live soldiers:

• Urban Combat Badge - +5 Defense when in cover or +5 Aim against enemies in full cover. Maximum of 5 medals issued. Requires completing an urban map mission?

• Defender's Medal - Never panic as result of allies getting wounded or killed or Medikits and Restorative Mists heal 2 HP more when used on this soldier. Maximum of 3 medals issued. Requires a soldier dying or being stabilized.

• International Service Cross - +2 Will per different nationality in the squad or +2 Aim per continent bonus XCOM has earned. Maximum of 2 medals issued. Requires a mission(s) outside your base's continent.

• Council Medal of Honor - Provides 10 Aim and Critical Chance if not within 7 tiles of an allied unit. Maximum of 2 medals. Complete Council missions.

• Star of Terra Maximum of 1 medal. Complete XCOM Base Defense mission.

I can confirm from my own experience that the info for all the first 4 seems to be correct.

The maximum number of medals refers to the number of medals in the medals pool + the number of medals pinned on live soldiers. So, when a soldier with a medal dies or is dismissed, a new medal can be received.