Not really. It's a generalization of the long-division algorithm. In that we remove lumps and then work on the remainder, ensuring that at each stage we've removed the largest lump possible given the number of digits we can have used so far. Then we recurse on the remainder.
In the square-root algorithm we remove the largest square possible at each stage, and work on the remainder. There's a hitch, because there's more detail to carry over at each stage. We do that with a linear factor of what we've already removed (that's the bit where we multiply the quotient so far by two) and then add the "epsilon" for the next lump to remove.
This can all be derived from first principles using the fact that (x+a)^2 = x^2 + 2ax + a^2. I did that when I was about 13.