positive square root
Every nonnegative number has exactly one nonnegative square root. The spectral theorem gives operators the same privilege. If T is a positive operator, there is one and only one positive operator S with S^2 = T, written S = sqrt(T) or T^(1/2). The construction is the functional calculus applied to the function f(x) = sqrt(x): take the spectral resolution T = sum lambda_i P_i and set sqrt(T) = sum sqrt(lambda_i) P_i.
This makes sense exactly because T is positive: every lambda_i >= 0, so sqrt(lambda_i) is a genuine nonnegative real number and the projections are untouched. The result is self-adjoint (real eigenvalues), positive (nonnegative eigenvalues), commutes with T, and squares back to T. Uniqueness among positive operators is the subtle and important part: there are many operators whose square is T (any sign choice on eigenvalues, or non-self-adjoint roots), but only one of them is itself positive.
The positive square root is a quiet workhorse behind two headline factorizations. In the polar decomposition every operator A factors as A = U P with U a partial isometry and P = sqrt(A^* A) the positive square root of A^* A, the operator analogue of writing a complex number as (magnitude)(phase). And the singular values of A are exactly the eigenvalues of P, which is why the SVD and the spectral theorem for A^* A are two views of one structure. Whenever you need to take a clean half-step of a positive transformation, this is the tool.
The positive square root via functional calculus, and its role as the positive factor in the polar decomposition.
Uniqueness is only within the positive operators. Drop that requirement and a positive T has many square roots, just as 4 has square roots 2 and -2; only the positive one is meant by sqrt(T).