Direct from Perfectflite:
Below you will find some general information about using a LiPo with the StratoLoggers. I believe it answers your questions, but if anything isn't clear please ask.
You can use LiPos, but they have a number of issues that you have to be concerned about. If not charged properly, they can burst into flame and/or explode, so you need to make sure you are using exactly the right charger (current, voltage, and cutoff) and you should never charge them unattended.
Also, if you lose a rocket for a couple of days running on a LiPo so that the battery is run down to less than 3 volts per cell (3 volts for a 1S single cell, 6 volts for a 2S two-cell battery) you need to resist the urge to try to recharge and re-use it -- throw it away instead. In addition to diminishing the capacity of the cells to an unpredictable state, trying to recharge a severely discharged cell can result in fire or explosion.
Choosing a LiPo:
A large LiPo (> 300 mAh) can put out over 30 amps of current when shorted. The altimeter has a max current rating of 5 amps. It will PWM the signal to try to reduce the current to this level, but if you use a large LiPo and fire into a shorted ematch it could fry the altimeter before the PWM can come into play. We'd recommend 125 - 150 mAh maximum. Anything more will not net you any benefit anyway, will be larger and heavier, and could damage the altimeter if you have a shorted ematch. A 150 mAh LiPo will run the altimeter for several days on a single charge and is smaller, lighter, and less expensive.
If your LiPo has a small PCB attached to it (usually wrapped in yellow Kapton tape) it probably has current limiting built in. If so, and the current limiter detects an overcurrent situation, it will shut down the power from the battery permanently until all load is removed. If your drogue ematch triggers the overcurrent limiter, the altimeter will lose power and will shut down, and you will not get any events fired and will crash your rocket. If you have this PCB installed on your battery, you should remove it.
Choosing 1S (one cell, 3.7V nominal, 4.2V full charge) or 2S (two cells, 7.4V nominal, 8.4V full charge):
The altimeter has built-in brownout protection that will allow it to function through brief disruptions of power (but not the permanent power loss scenario described above). If your battery does not cut out altogether (the preceding scenario) but the voltage drops significantly when the ematch is pulling current, the brownout protection serves to keep things running properly and the altimeter will ride out the momentary voltage dip. With a 9V battery, you get 2 to 3 seconds of brownout protection. With a single cell 1S LiPo in the 4 volt range you will get much less protection (less than 1 second) -- If the ematch is shorted and kills power from the battery for 1 second the altimeter would likely shut down and your rocket would crash.
Also, the beeper is louder with higher voltage, it will not be as loud with 4V.
If you want to use a LiPo, we would suggest a two cell 2S 125 to 150 mAh LiPo battery which will have plenty of power to fire your ematch, will run the altimeter for several days, will be louder, and will be much less likely to burn out the altimeter in the event of a shorted ematch or shorted ematch wiring.