The battery is not user-replaceable, but like on your phone, it should last for years.
Altitude is GPS altitude. It's based on a mathematical model of the earth that isn't exactly the same as mean sea level, but the model is designed to be comparable to other altitude measuring techniques. In practice, you'll see altitudes that are between dozens and small hundreds of feed different than what your altimeter says. The differences are due to satellite configuration, reception quality, and differences in air masses that can cause pressure altitudes to be non-standard at different altitudes.