I wonder about which algorithm does Python use for estimating square root values ? Is it Newton or Babylonian or other ?
It depends on the implementation; the language does not define the algorithm.  ShadowRanger already hit two common ones.  These are general, software-based methods.
However, it's quite common for the processor itself to have a machine-level SQRT function.  Intel chips have implemented basic transcendental functions in the late 1980s.  As a result, iPython simply in-lines the on-chip function; there is no software algorithm, as the on-chip code determines the value by a couple of hardware operations, deriving mantissa and characteristic in parallel.
Which algorithm does Python use for estimating square root value?