Asking what a square root "is", to a mathematician's ear, means asking how it is defined: if I may read into what you're saying, that's not what you're trying to figure out here. But knowing how some other things are defined will help.
So, let's start with the real numbers: what you know as streams of decimal digits are generally defined in some way or another as all of the spaces between rational numbers. Rational numbers are the whole-number-fractions that you learned about in school. If you want to read up more on how to formally do this, those spaces are called Dedekind cuts.
There are two other key observations about squaring numbers which makes it easier to produce a square root. The first one is: if $0 < a < b$, then $a^2 < b^2$, this has one of those scary math-names (monotonic). The second one is that if two rationals are near each other, then their squares are near each other (continuous). (This latter property is actually even better because squaring is not just continuous but differentiable, which is a complicated word that means that, when you zoom in on the graph, it becomes a straight line everywhere -- it's like a circle, not like a fractal.)
Since it's continuous, the square root of any positive real number is always a well-defined positive real number: Given the positive gap-between-rationals which you want to take the square root of, the square root is the positive gap-between-rationals such that any rational greater than the square-root-gap squares to a rational greater than the square-gap, similarly for numbers below the gaps. So every real number has a real square root.
And that leads to the first and easiest way to find it, called bisection: suppose you know that the unknown gap $p$ corresponding to a known square $p^2$ is between two rationals $r_1$ and $r_2$, so $r_1^2 < p^2 < r_2^2$. Then take the rational halfway between those two, $r_m = (r_1 + r_2) / 2$, and see whether $r_m^2 < p^2$ (in which case it replaces $r_1$) or whether $r_m^2 > p^2$ (in which case it replaces $r_2$). This cuts your search space in half! After three or four of these you usually know another decimal digit.
Concrete example: we want the square root of 18. We choose a perfect square less than it, and one greater than it. If you're doing it by hand in decimal, it helps to know the square numbers up to 100 and then use the fact that square roots distribute over multiplication to multiply the grid by 100: so we use a grid of {1, 4, 9, 16, 25, 36, 49, 64, 81, 100, 400, 900, 1600, ...}. So we start off knowing that the value is between 16 and 25, so the square root is between 4 and 5.
So we try 4.52 = 20.25, which is too big. The square root is therefore between 4 and 4.5. We try 4.252 = 18.0625, which is still too big, so the square root is between 4 and 4.25. We try 4.1252 = 17.015625, which is finally too small, so the square root is between 4.125 and 4.25. So now we try 4.18752 = 17.5..., then 4.218752 = 17.79..., and at this point we can very firmly state that the number is approximately 4.2. The next lower bound is 4.2343752 = 17.9299..., the next lower bound is 4.24218752 = 17.996... . Then we'll start reducing the upper bound again; you can find eventually that the answer is 4.242640687119... and you'll get one decimal digit for every three or four of these operations you do.
There is a better way. If you followed that example you'll notice that we discovered that 4.252 was unusually close to 18, so if you were doing this by hand you probably would have guessed not 4.125
but 4.24
instead. And yeah, maybe you will sometimes be wrong with these guesses, but it beats doing all of that extra work if you're not a computer!
Well a long time ago (in, like, Babylonian days) we discovered exactly what you should guess. The idea is that if you have a guess $g$ that is smaller than the square root of N by a small amount $s$, then you don't know $s$ but you do know that $$N = (g + s)^2 = g^2 + 2 g s + s^2$$. Ignoring the $s^2$ as being (small) * (small) = (too small) gives an approximation for $s$:$$s \approx s_g = (N - g^2) / (2 g)$$ which suggests that you should make your next guess $$g + s_g = \frac{g^2 + N}{2 g} = \frac{g + N/g}{2}$$. This guess even has the nice property that when you start with an underestimate then you get a slight overestimate, and vice versa.
So for that, to get the square root of 18, we start by guessing 4. Our next guess is (4 + 18/4)/2 = 17/4, the same "good guess" we got before: we now know that the number is between 4.0 and 4.25. We do it again to find (17/4 + 18*4/17)/2, which works out to 577/136 or 4.24264..., so we already have our next two digits (because its being between 4.24... and 4.25 means that it's 4.24...). If you do the next step you get 665,857/156,944, which lets you know that it's 4.24264..., and if you do the next step you get 886,731,088,897 / 209,004,522,016, which is so close to the square root that my computer actually can't tell the difference (at double precision), so with one step more you can prove that it's that value (to double precision).