Relative localization of unmanned aerial vehicle (UAV) swarms in global navigation satellite system (GNSS) denied environments is essential for emergency rescue and battlefield reconnaissance. Existing methods suffer from significant localization errors among UAVs due to packet loss and high computational complexity in large swarms. This paper proposes a clustering-based framework where the UAVs simultaneously use communication signals for channel estimation and ranging. Firstly, the spectral clustering is utilized to divide the UAV swarm into different sub-clusters, where matrix completion and multidimensional scaling yield high-precision relative coordinates. Subsequently, a global map is created by the inter-cluster anchor fusion. A case study of UAV integrated communication and sensing (ISAC) system is presented, where the Orthogonal Time Frequency Space (OTFS) is adopted for ranging and communication. Experimental results show that the proposed method reduces localization errors in large swarms and loss of range information. It also explores the impact of signal parameters on communication and localization, highlighting the interplay between communication and localization performance.