A major issue for the implementation of large scale superconducting quantum circuits is the interaction with interfacial two-level system defects (TLS) that leads to qubit relaxation and impedes qubit operation in certain frequency ranges that also drift in time. Another major challenge comes from non-equilibrium quasiparticles (QPs) that result in qubit dephasing and relaxation. In this work we show that such QPs can also serve as a source of TLS. Using spectral and temporal mapping of TLS-induced fluctuations in frequency tunable resonators, we identify a subset of the general TLS population that are highly coherent TLS with a low reconfiguration temperature ∼ 300 mK, and a non-uniform density of states. These properties can be understood if these TLS are formed by QPs trapped in shallow subgap states formed by spatial fluctutations of the superconducting order parameter Δ. Magnetic field measurements of one such TLS reveals a link to superconductivity. Our results imply that trapped QPs can induce qubit relaxation.