I'm solving this problem from 11.12 in Birkenhake C., Lange H. - Complex abelian varieties.
Here $W_2$ is an image of $\mu:C^{(2)}\longrightarrow \operatorname{Pic}^2(C)$. Using Rhiemann singularity theorem I've shown that $\operatorname{dim} \operatorname{Sing}W_2=0$ and that it is actually one point. Also by Riemann's Singularity theorem $\operatorname{mult}(l)=h^0(l)=2$. Hence I know that the singularity is a double point, but I have no clue why this is an ordinary double point. So my question is "How to show that this is an ordinary double point?".
I really appreciate any help you can provide.

First solution: You can calculate the self-intersection of the rational curve $E=\mu^{-1}(p)$. If it is $-2$, then the contraction gives an ordinary node. Here is a way to prove it: Let $$f:C\times C\to C^{(2)}$$ be the double cover branched at the diagonal. By definition, the pullback $F=f^{-1}(E)$ is the correspondence curve $\{(x,\tau(x))\in C\times C|x\in C\}$ which is isomorphic to $C$, where $\tau$ is the involution given by canonical mapping.
We first compute the self-intersection of $F$. By adjunction formula
$$K_{F}=(K_{C\times C}\otimes [F])|_{F}.$$
Intersection with $F$ on both sides, using the fact that $K_F\cdot F=\deg(K_F)=4$ and $K_{C\times C}=\pi_1^*K_C\otimes \pi_2^*K_C$ where $\pi_i$ is projection to $i$-th coordinate and the intersection of $F$ with a vertical or horizontal curve is $1$, we get $4=8+F\cdot F$, so $F\cdot F=-4$.
How to compute $E\cdot E$? By projection formula $$f_*F\cdot E=f_*(F\cdot f^*E)$$
together with $f_*F=2E$ and $f^*E=F$ as divisors, we conclude that $E\cdot E=-2$.
Second Solution: Alternatively, Riemann singularities theorem also tells you the projective tangent cone of the singularity at the theta divisor, more precisely from Griffiths and Harris, page 343
Now apply to your case where $g=3$ and $C$ is hyperelliptic, and the linear system is a $g_1^2$ (which means $d=2$ and $r=1$), so the projective tangent cone of the isolated singularity at $W_2$ is just the canonical curve of $C$, i.e., a smooth conic in $\mathbb P^2$. Smoothness implies that the double point is nondegenerate, so it is an ordinary double point.