We investigate phase transitions in the nonequilibrium dynamics of power-law interacting spin-$1/2$ bilayer XXZ models, which have recently been shown to allow generation of entanglement in the form of two-mode squeezing. We find a transition between a collective phase characterized by Heisenberg limited squeezing and a partially collective phase with scalable squeezing. We identify universal scaling of the squeezing dynamics in terms of system parameters and a divergent timescale, establishing these as distinct dynamical phases within the framework of nonequilibrium critical phenomena. Our Letter demonstrates a novel dynamical phase transition with potential applications in quantum sensing and quantum simulation in cold-atomic, molecular, or Rydberg platforms.

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• Dynamical phase transitions
• Quantum phase transitions
• Quantum sensing
• Nonequilibrium systems
• Quantum spin models
• Ultracold gases