For language, you don't need magic, just time (and DM buy-in)
I agree with David Coffron's answer that for disguising the true nature of your animal companion, having it attune to a hat of disguise is the best solution. You will need to work with your DM to decide whether its tentacles are limbs and, if so, how they might be hidden.
But for communication, you don't need a magic item. You have the advantage of time - you are raising an intelligent creature from its youth, during the important window when it would be learning a language anyway.
The displacer beast has an Intelligence of 6, the same score as an ape. Apes, in our world, can understand human spoken language and respond by expressing themselves with sign language and lexigrams. Displacer beasts are said to have a "malevolent intelligence", and to be able to "demonstrate skill at setting ambushes. A single beast will strike and withdraw, luring prey into a densely
wooded area where its packmates wait. Packs of displacer beasts hunting near trade roads recall the frequency and schedule of regular caravans, laying down ambushes to pick off those caravans." (MM 81). Your kitten, as she grows, will listen to you speaking to her, will recall your words, and will come to understand your spoken language. In turn, she will be able to respond to you - not with a spoken language, but with patience and training with body language and especially signs she can form with her flexible tentacles.
As you deepen your bond, you will be able to read her expressions more and more clearly. When you reach 6th level as Ranger, you can select Displacer Beast as your additional favored enemy (emphases mine):
You have advantage on Wisdom (Survival) checks to track your favored enemies, as well as on Intelligence checks to recall information about them.
When you gain this feature, you also learn one language of your choice that is spoken by your favored enemies, if they speak one at all.
You choose one additional favored enemy, as well as an associated language, at 6th and 14th level. As you gain levels, your choices should reflect the types of monsters you have encountered on your adventures.
Now normally Displacer Beasts don't speak a language at all. But since you are raising this intelligent creature from kittenhood, she will be striving to communicate with you in a non-verbal language, to the extent of her impressive intelligence. With DM buy-in, you should be able to learn this language. Eventually she will be able to understand what you are saying, and you will be able to understand what she is expressing as well.