Assume $X\subset \mathbb P^n$ is a variety (Edit: let's say $X$ is a hypersurface in $\mathbb P^n$, as pointed out in the comment) and $x\in X$ is a singular point which is not isolated. Intuitively, I think the quadratic tangent cone at $x$ (i.e. the $Z(f_2)$ where $f=f_2+f_3+ \cdots$ is the defining equation of $X$ on an affine chart centered at $x$) is always degenerate, as it should degenerate "along" the singular locus. Is this true? And is there any reference about this?
Thanks!
When $X$ is a hypersurface, it reduces to consider a holomorphic function $f:\mathbb C^n\to \mathbb C$. Let $x$ be a singular point on $X:=f^{-1}(0)$. Then this theorem is what you really need:
Here the Milnor number at $x$ is defined to be $\mu_x:=\dim_{\mathbb C} \mathcal{O}_{X,x}/J$, with $J$ the Jacobi ideal
$$J:=\langle\frac{\partial f}{\partial x_1},...,\frac{\partial f}{\partial x_n}\rangle.$$
Assuming the theorem is true, now it is an exercise to show:
Proof of Theorem: If $x$ is isolated, then (up to choosing a smaller affine chart) the common zero locus of $J$ is the single point $\{x\}$, therefore by Nullstellensatz $\sqrt{J}=\mathfrak{m}_x$. Since $\mathfrak{m}_x$ is finitely generated, there exists an integer $r\ge 1$, s.t., $\mathfrak{m}_x^r\subset J$. Now $$\dim_{\mathbb C}\mathcal{O}_{X,x}/\mathfrak{m}^r_x=\sum_{i=1}^r\dim_{\mathbb C}\mathfrak{m}_x^{i-1}/\mathfrak{m}_x^{i}<\infty$$ implies that $\mu_x$ is finite. The other direction needs Nakayama's lemma. $\square$
You can find the literature of the Theorem in Chapter 1, Lemma 2.3 (together with Corollary 1.74) in Introduction to Singularities and Deformations by Greuel, Lossen and Shustin.
I should also point it out that there is a topological proof by Milnor in Appendix B of his famous book Singular Points of Complex Hypersurfaces, where he studied topology of isolated hypersurface singularity in 1968 and introduced $\mu_x$ (in a topological way).
Topological implication of Milnor number $\mu_x$: This is irrelavent to OP's question, but I'd like to remark here that if $x$ is an isolated singularity, and $B$ a small ball around $x$ in $\mathbb C^n$, then for $t\neq 0$ and $|t|<<1$, the Milnor fiber $f^{-1}(t)\cap B$ has topological type bouquet of spheres $$\underbrace{S^{n-1}\vee\cdots \vee S^{n-1}}_{\mu_x}$$
In other words, $\mu_x$ is the number of $(n-1)$-spheres that appear through a "perturbation" of the isolated singularity.