Given a hyperreal infinitesimal number $\epsilon$ , is it meaningful to take its square root, $\sqrt{\epsilon}$ or any other root? What about using it as an exponent, as in $2^{\epsilon}$ ? And what about something like $\epsilon^{\epsilon}$ .
I've looked in a few sources like Henle's Infinitesimal Calculus but couldn't find anything on how or whether exponentiation works with hyperreal infinitesimals.
As mentioned in the comments, any real function extends canonically to a hyperreal function, sometimes called the natural extension. You can then apply Łoś's theorem/the transfer principle to apply any identities you know for the real functions to their hyperreal extension.
From the book you mentioned, Henle's Infinitesimal Calculus, Chapter 3: