I want to brutely show that polynomial is irreducible which is okay. However is there some other methods that you can give me hint about?
For example if we think $x^4+x^2y^2-y^2$ as
$$(x^2)^2+(x^2)y^2-y^2$$
so we can substitute $a=x^2$ then
$$x^4+x^2y^2-y^2$$$$=$$$$1/4(x^2-(-y^2-\sqrt{y^4+4y^2}))(x^2-(-y^2+\sqrt{y^4+4y^2}))$$
which is not true in the polynomial ring. But how can it show it is not reducible by 2deg x 2deg polynomials is it enough and what about 3degx1deg reducibility?
Consider $\mathbb{C}[X,Y]= \mathbb{C}[X][Y]$. We can transform the polynomial $Y^2(X^2-1) + X^4$ by reversing the order of its coefficients. There is a statement that the original polynomial is irreducible iff. the polynomial with coefficients in reversed order is (see: Wikipedia.) Reversing the order of the coefficients gives $Y^2X^4 + (X^2-1)$. Then Eisenstein's criterion is fulfilled for the prime element $X+1$. Hence also the original polynomial is irreducible.