Algorithms for addition work by taking advantage of the fact that a string of digits can be expanded (e.g. $123 = 1\times 10^2 + 2\times 10 + 3$) and by means of this expansion together with the algebraic properties of addition it can be "creatively reinterpreted" (e.g. $3$ is less than $4$? Well we can reinterpret the $2$ as $2$ $10$s etc...).
But how do traditional algorithms for square roots that they used to teach schoolchildren in the 19th century work?
I'm not exactly sure which algorithms you are referring to, but they could be based off of the Taylor Expansion. For example, if $a$ is small compared to $x$, you know that $$\sqrt{x+a} \approx \sqrt{x} + \frac{a}{2 \sqrt{x}}.$$ So then you could approximate $$\sqrt{103} \approx 10 + \frac{3}{20}.$$ You can get a higher degree of accuracy by taking more terms from the Taylor Expansion.