A previous question credits François Viète with introducing the well-known longhand method for the computation of square roots in digit-by-digit manner. This method is related to the binomial theorem.
However, in a German source ("Kleine Enzylopädie Mathematik". Leipzig, Bibliographisches Institut 1965) I came across a remark that the German mathematician Michael Stifel was already aware of this method in the 16th century.
Google provides a full scan of the book "Die Coss Christoffs Rudolffs, Mit schönen Exempeln der Cosz. Durch Michael Stifel Gebessert vnd sehr gemehrt" of 1571. This is a book on algebra written originally by Christoph Rudolff that was improved and expanded by Stifel.
The fourth chapter of the book describes the computation of square roots and cube roots. Starting at Fol. 42 the procedure for taking square roots is demonstrated, using the computation of $\sqrt{72352036}$ as an example. What is described definitely appears to be the longhand square root algorithm taught in school until a few decades ago, before the advent of affordable electronic calculators.
Wikipedia does not have much on Rudolff, but notes that "He introduced the radical symbol (√) for the square root." Since Stifel's additions to Rudolff's "Coss" of 1515 seem to be carefully indicated in the 1571 edition, it would seem that the longhand square root method was already described in Rudolff's original, but I have not managed to track down a scan of that yet. It is also not clear whether Rudolff invented the method. As Stifel's edition makes no such claim, I think it is possible that the algorithm predates Rudolff and possibly the 16th century.