First, by symmetry, your integral equals
$$
2\int_0^1\int_0^x\sqrt{x^2+y^2+1}\,dy\,dx.
$$
Changing to polar coordinates, you will get new limits
$$
0\leq \phi\leq \pi/4\quad\text{and}\quad 0\leq r\leq 1/\cos\phi,
$$
and so you end up with
$$
2\int_0^{\pi/4}\int_0^{1/\cos\phi}\sqrt{1+r^2}\,r\,dr\,d\phi.
$$
The inner integral is easily calculated,
$$
\int_0^{1/\cos\phi}\sqrt{1+r^2}r\,dr=\Bigl[\frac13\bigl(1+r^2\bigr)^{3/2}\Bigr]_0^{1/\cos\phi}=\frac{1}{3}\bigl(1+1/\cos^2\phi\bigr)^{3/2}-\frac{1}{3}.
$$
For the outer one, set $u=\tan\phi$, and you will have to tackle
$$
\int\frac{(2+u^2)^{3/2}}{1+u^2}\,du.
$$
Next, set
$$
s=\frac{u}{\sqrt{2+u^2}}
$$
and you will end up with a rational integrand,
$$
\int\frac{4}{(1-s^2)^2(1+s^2)}\,ds.
$$
I suppose you are now on safe ground? Continue with partial fraction decomposition. If I do not do too many errors in my calculations, the result is
$$\frac{1}{\sqrt{3}}-\frac{\pi}{18}+\frac{2}{3}\log(2+\sqrt{3})\approx 1.28.$$