I rearranged the answer and moved the equations around. However I kept the original numbering so that the comments make sense.
Consider a binary electrolyte AB which dissociates reversibly into A+ and B− ions with a nominal concentration of $c_0$. Ostwald noted that the law of mass action can be applied to such systems as dissociating electrolytes. The equilibrium state is represented by the equation:
$$\ce{AB <=> A+ + B^-}\tag{1}$$
If $\alpha$ is the fraction of dissociated electrolyte, then $\alpha \cdot c_0$ is the concentration of each ionic species. $(1-\alpha)$ must, therefore be the fraction of undissociated electrolyte, and $(1- \alpha )\cdot c_0$ the concentration of same. The dissociation constant may therefore be given as
$$ K_d =\dfrac{\ce{[A+][B-]}}{\ce{[AB]}}=\dfrac{(\alpha c_{0})(\alpha c_{0})}{(1-\alpha )c_{0}}=\dfrac{\alpha ^{2}}{1-\alpha }\cdot c_{0}\tag{2}$$
So far I've copied the Wikipedia article on the Law of dilution almost exactly. Now I'll depart that derivation.
From equation (2) let's start with:
$$ K_d = \dfrac{\alpha ^{2}}{1-\alpha }\cdot c_{0}\tag{3}$$
Dilute Solution Approximation
now if we assume that $(1-\alpha) \approx 1$ meaning that very little of the compound dissociated, then we get the standard approximation, $\alpha'$:
$$ \alpha^{'} \approx \sqrt{\dfrac{K_d}{c_{0}}}\tag{6}$$
Exact Solution - Odd Form
Now let's play around with Equation (3) to form an exact solution in an odd sort of form.
$$ \alpha^2 = \dfrac{K_d\cdot (1-\alpha )}{c_{0}}\tag{4}$$
and solving for the square root:
$$ \alpha = \sqrt{\dfrac{K_d}{c_{0}}\cdot (1-\alpha )}\tag{5}$$
Now Equation (5) is in an odd form, but it is exact. Knowing $K_d/c_0$ one could guess at values of $\alpha$ until a value was found that would satisfy the equation.
Remember that we're looking for values of $K_c/c_0 << 1$. Comparing equations (6) and (5) it is obvious to the casual observer that equation (6) must always give a value that is larger than equation (5). Hence if $ 1 \gg \alpha^{'}$ then $ 1 \gg \alpha^{'} \gt \alpha$
Exact Solution - Exact Quadratic Solution
Equation(5) is in the wrong form to directly solve for $\alpha$ of course. So let's go back to equation (3) and rearrange to a reduced quadratic equation which could be solved with the standard quadratic formula.
$$ \alpha^2 +\dfrac{K_d}{c_0}\cdot \alpha -\dfrac{K_d}{c_0}= 0\tag{7}$$
$$\alpha = - \dfrac{K_d}{2\cdot c_0} + \sqrt{\left(\dfrac{K_d}{2\cdot c_0}\right)^2 + \dfrac{K_d}{c_0}}\tag{8}$$
Data Table
Now for various $K_d/c_0$ values let's calculate the approximate solution, the exact solution, and the % Error.
\begin{array}{|c|c|c|c|} \hline
\dfrac{K_d}{c_0} & Approximation & Quadratic & \% Error \\
& Equation (6) & Equation (8) & \\ \hline
1.00000000 & 1.00000000 & 0.618034 & 61.803399 \\ \hline
0.81000000 & 0.90000000 & 0.581927 & 54.658561 \\ \hline
0.64000000 & 0.80000000 & 0.541626 & 47.703296 \\ \hline
0.49000000 & 0.70000000 & 0.496637 & 40.948101 \\ \hline
0.36000000 & 0.60000000 & 0.446418 & 34.403065 \\ \hline
0.25000000 & 0.50000000 & 0.390388 & 28.077641 \\ \hline
0.16000000 & 0.40000000 & 0.327922 & 21.980390 \\ \hline
0.09000000 & 0.30000000 & 0.258356 & 16.118742 \\ \hline
0.04000000 & 0.20000000 & 0.180998 & 10.498756 \\ \hline
0.02647076 & 0.16269836 & 0.150000 & 8.465257 \\ \hline
0.02250000 & 0.15000000 & 0.139171 & 7.780856 \\ \hline
0.01000000 & 0.10000000 & 0.095125 & 5.124922 \\ \hline
0.00010000 & 0.01000000 & 0.009950125 & 0.501249992 \\ \hline
1.000000E-06 & 0.00100000 & 9.995001E-04 & 5.001250E-02 \\ \hline
1.000000E-08 & 0.00010000 & 9.999500E-05 & 5.000125E-03 \\ \hline
1.000000E-10 & 0.00001000 & 9.999950E-06 & 5.000013E-04 \\ \hline
1.000000E-12 & 0.00000100 & 9.999995E-07 & 5.000001E-05\\ \hline
\end{array}
(1) So for this equation when the approximate amount of dissociation is 0.1 you get 1 significant figure, 0.01 gets two significant figures and so on. The improvement doesn't continue forever of course this is chemistry not math. To get three significant figures you'd have to be a fastidious experimenter.
(2) Notice that the exact quadratic solution is always lower than the approximate solution.
(3) The OP asked how the exact solution of 0.15 dissociation would compare with the approximate solution. From the table the corresponding value is about 0.163, an error of about +8.5%.
Exact Enough Solution - Using Linear Series Solution
In case the hand-waving argument above didn't persuade you that the approximate solution is always bigger that the exact solution, let's explore a solution using a series where an increasing number of terms could be used to get a solution as exact as desired.
Rearranging equation (8), an exact equation, by pulling out a $\sqrt{\dfrac{K_d}{c_0}}$ term:
\begin{align*}
\alpha
&= \sqrt{\dfrac{K_d}{c_0}} \left( \sqrt{\dfrac{K_d}{4\cdot c_0} + 1} - \sqrt{\dfrac{K_d}{4\cdot c_0}} \right)\tag{9} \\
&= \sqrt{\dfrac{K_d}{c_0}} \left( \sqrt{\dfrac{K_d}{4\cdot c_0} + 1} - \sqrt{\dfrac{K_d}{4\cdot c_0}} \right)\cdot \left(\dfrac{\sqrt{\dfrac{K_d}{4\cdot c_0} + 1} + \sqrt{\dfrac{K_d}{4\cdot c_0}}}{\sqrt{\dfrac{K_d}{4\cdot c_0} + 1} + \sqrt{\dfrac{K_d}{4\cdot c_0}}} \right)\tag{10} \\
&=\dfrac{\sqrt{\dfrac{K_d}{c_0}}}{\sqrt{\dfrac{K_d}{4\cdot c_0} + 1} + \sqrt{\dfrac{K_d}{4\cdot c_0}}} \tag{11}
\end{align*}
Now, using the Taylor series for the denominator yields an approximation, which is quite good. (Many thanks to user Claude Leibovici on the
Mathematics site for the heavy lifting here...)
$${\sqrt{\dfrac{K_c/c_0}{4} + 1} +\sqrt{\dfrac{K_c/c_0}{4}} }=1+\frac{\sqrt{K_c/c_0}}{2}+\frac{K_c/c_0}{8}+O\left((K_c/c_0)^{2}\right)\tag{12}$$ which makes
$$\alpha^{"} \approx \frac {\sqrt{K_c/c_0}}{1+\frac{\sqrt{K_c/c_0}}{2}+\frac{K_c/c_0}{8}}\tag{13}$$
Obviously the more terms the better the approximation, but three terms is good enough for anything that we chemists would do. Again remember that we're solving for dilute solutions where $K_c/c_0 \ll 1$. Also notice that all the terms are positive so the more terms used, the smaller the value of the dissociation fraction.
\begin{array}{|c|c|c|c|c|} \hline
K_c/c_0 & Quadratic & \sqrt{K_c/c_0} & \frac {\sqrt{K_c/c_0}}{1+\frac{\sqrt{K_c/c_0}}{2}} & \frac {\sqrt{K_c/c_0}}{1+\frac{\sqrt{K_c/c_0}}{2} + \frac{K_c/c_0}{8}} \\ \hline
1 & 0.61803399 & 1.00000000 & 0.66666667 & 0.61538462 \\ \hline
0.81 & 0.58192705 & 0.90000000 & 0.62068966 & 0.58017728 \\ \hline
0.64 & 0.54162637 & 0.80000000 & 0.57142857 & 0.54054054 \\ \hline
0.49 & 0.49663670 & 0.70000000 & 0.51851852 & 0.49601417 \\ \hline
0.36 & 0.44641839 & 0.60000000 & 0.46153846 & 0.44609665 \\ \hline
0.25 & 0.39038820 & 0.50000000 & 0.40000000 & 0.39024390 \\ \hline
0.16 & 0.32792156 & 0.40000000 & 0.33333333 & 0.32786885 \\ \hline
0.09 & 0.25835623 & 0.30000000 & 0.26086957 & 0.25834230 \\ \hline
0.04 & 0.18099751 & 0.20000000 & 0.18181818 & 0.18099548 \\ \hline
0.01 & 0.09512492 & 0.10000000 & 0.09523810 & 0.09512485 \\ \hline
0.0001 & 0.00995012 & 0.01000000 & 0.00995025 & 0.00995012 \\ \hline
0.000001 & 0.00099950 & 0.00100000 & 0.00099950 & 0.00099950 \\ \hline
0.00000001 & 0.00010000 & 0.00010000 & 0.00010000 & 0.00010000 \\ \hline
1E-10 & 0.00001000 & 0.00001000 & 0.00001000 & 0.00001000 \\ \hline
1E-12 & 0.00000100 & 0.00000100 & 0.00000100 & 0.00000100 \\ \hline
\end{array}