 Solution

Since $A$ is invertible, the quadratic form gradient vanishes exactly at the origin. At every nonzero point of $C_{\alpha }$, the scalar derivative is surjective, so the regular level set theorem gives a smooth submanifold of dimension $n-1$.

If $\alpha \ne 0$, the origin is absent. Therefore the largest relatively open smooth subset is all of $C_{\alpha }$.

If $\alpha =0$, the nontriviality assumption forces the form to be an indefinite quadratic form: an invertible definite form would have zero set consisting only of the origin. Every nonzero point is regular. To show that the origin really fails to be a manifold point, use Sylvester's law of inertia to reduce to $|u{|}^2-|w{|}^2=0$. With positive and negative coordinate vectors $e_i,f_j$, the null vectors $e_i+f_j$ and $e_i-f_j$ span ${\mathbb{R}}^n$. Each line in one of these directions lies in the cone.

If a relatively open manifold neighborhood of the origin existed, its tangent space would contain all these line directions, so would have dimension $n$. Such an embedded manifold would be open in ${\mathbb{R}}^n$, impossible for the zero set of a nonzero quadratic form. ConsequentlyThis gives the smooth locus of a nondegenerate real quadratic level set, including maximality at the singular vertex.