diff --git a/homeassistant/components/update/__init__.py b/homeassistant/components/update/__init__.py
index e308365c1c6..75535849cc1 100644
--- a/homeassistant/components/update/__init__.py
+++ b/homeassistant/components/update/__init__.py
@@ -27,6 +27,7 @@ from homeassistant.util.hass_dict import HassKey
 from .const import (
     ATTR_AUTO_UPDATE,
     ATTR_BACKUP,
+    ATTR_DISPLAY_PRECISION,
     ATTR_IN_PROGRESS,
     ATTR_INSTALLED_VERSION,
     ATTR_LATEST_VERSION,
@@ -178,6 +179,7 @@ class UpdateEntityDescription(EntityDescription, frozen_or_thawed=True):
     """A class that describes update entities."""
 
     device_class: UpdateDeviceClass | None = None
+    display_precision: int = 0
     entity_category: EntityCategory | None = EntityCategory.CONFIG
 
 
@@ -191,6 +193,7 @@ CACHED_PROPERTIES_WITH_ATTR_ = {
     "auto_update",
     "installed_version",
     "device_class",
+    "display_precision",
     "in_progress",
     "latest_version",
     "release_summary",
@@ -210,6 +213,7 @@ class UpdateEntity(
 
     _entity_component_unrecorded_attributes = frozenset(
         {
+            ATTR_DISPLAY_PRECISION,
             ATTR_ENTITY_PICTURE,
             ATTR_IN_PROGRESS,
             ATTR_RELEASE_SUMMARY,
@@ -221,6 +225,7 @@ class UpdateEntity(
     _attr_auto_update: bool = False
     _attr_installed_version: str | None = None
     _attr_device_class: UpdateDeviceClass | None
+    _attr_display_precision: int
     _attr_in_progress: bool | int = False
     _attr_latest_version: str | None = None
     _attr_release_summary: str | None = None
@@ -228,7 +233,7 @@ class UpdateEntity(
     _attr_state: None = None
     _attr_supported_features: UpdateEntityFeature = UpdateEntityFeature(0)
     _attr_title: str | None = None
-    _attr_update_percentage: int | None = None
+    _attr_update_percentage: int | float | None = None
     __skipped_version: str | None = None
     __in_progress: bool = False
 
@@ -258,6 +263,15 @@ class UpdateEntity(
             return self.entity_description.device_class
         return None
 
+    @cached_property
+    def display_precision(self) -> int:
+        """Return number of decimal digits for display of update progress."""
+        if hasattr(self, "_attr_display_precision"):
+            return self._attr_display_precision
+        if hasattr(self, "entity_description"):
+            return self.entity_description.display_precision
+        return 0
+
     @property
     def entity_category(self) -> EntityCategory | None:
         """Return the category of the entity, if any."""
@@ -337,12 +351,12 @@ class UpdateEntity(
         return features
 
     @cached_property
-    def update_percentage(self) -> int | None:
+    def update_percentage(self) -> int | float | None:
         """Update installation progress.
 
         Needs UpdateEntityFeature.PROGRESS flag to be set for it to be used.
 
-        Can either return an integer to indicate the progress from 0 to 100% or None.
+        Can either return a number to indicate the progress from 0 to 100% or None.
         """
         return self._attr_update_percentage
 
@@ -460,6 +474,7 @@ class UpdateEntity(
 
         return {
             ATTR_AUTO_UPDATE: self.auto_update,
+            ATTR_DISPLAY_PRECISION: self.display_precision,
             ATTR_INSTALLED_VERSION: installed_version,
             ATTR_IN_PROGRESS: in_progress,
             ATTR_LATEST_VERSION: latest_version,
diff --git a/homeassistant/components/update/const.py b/homeassistant/components/update/const.py
index 00b8cfa76b2..83a74ef6789 100644
--- a/homeassistant/components/update/const.py
+++ b/homeassistant/components/update/const.py
@@ -23,6 +23,7 @@ SERVICE_SKIP: Final = "skip"
 
 ATTR_AUTO_UPDATE: Final = "auto_update"
 ATTR_BACKUP: Final = "backup"
+ATTR_DISPLAY_PRECISION: Final = "display_precision"
 ATTR_INSTALLED_VERSION: Final = "installed_version"
 ATTR_IN_PROGRESS: Final = "in_progress"
 ATTR_LATEST_VERSION: Final = "latest_version"
diff --git a/tests/components/airgradient/snapshots/test_update.ambr b/tests/components/airgradient/snapshots/test_update.ambr
index f76a8fc1196..1f944bb528b 100644
--- a/tests/components/airgradient/snapshots/test_update.ambr
+++ b/tests/components/airgradient/snapshots/test_update.ambr
@@ -37,6 +37,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/airgradient/icon.png',
       'friendly_name': 'Airgradient Firmware',
       'in_progress': False,
diff --git a/tests/components/devolo_home_network/snapshots/test_update.ambr b/tests/components/devolo_home_network/snapshots/test_update.ambr
index de6a67d5e3d..8a1065f9a60 100644
--- a/tests/components/devolo_home_network/snapshots/test_update.ambr
+++ b/tests/components/devolo_home_network/snapshots/test_update.ambr
@@ -4,6 +4,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/devolo_home_network/icon.png',
       'friendly_name': 'Mock Title Firmware',
       'in_progress': False,
diff --git a/tests/components/fritz/snapshots/test_update.ambr b/tests/components/fritz/snapshots/test_update.ambr
index 4914ba85269..3c7880d01e7 100644
--- a/tests/components/fritz/snapshots/test_update.ambr
+++ b/tests/components/fritz/snapshots/test_update.ambr
@@ -36,6 +36,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/fritz/icon.png',
       'friendly_name': 'Mock Title FRITZ!OS',
       'in_progress': False,
@@ -93,6 +94,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/fritz/icon.png',
       'friendly_name': 'Mock Title FRITZ!OS',
       'in_progress': False,
@@ -150,6 +152,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/fritz/icon.png',
       'friendly_name': 'Mock Title FRITZ!OS',
       'in_progress': False,
diff --git a/tests/components/iron_os/snapshots/test_update.ambr b/tests/components/iron_os/snapshots/test_update.ambr
index fbfc490e121..e0872d032ec 100644
--- a/tests/components/iron_os/snapshots/test_update.ambr
+++ b/tests/components/iron_os/snapshots/test_update.ambr
@@ -40,6 +40,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/iron_os/icon.png',
       'friendly_name': 'Pinecil Firmware',
       'in_progress': False,
diff --git a/tests/components/lamarzocco/snapshots/test_update.ambr b/tests/components/lamarzocco/snapshots/test_update.ambr
index c40677a80ca..6e6b7285797 100644
--- a/tests/components/lamarzocco/snapshots/test_update.ambr
+++ b/tests/components/lamarzocco/snapshots/test_update.ambr
@@ -4,6 +4,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/lamarzocco/icon.png',
       'friendly_name': 'GS01234 Gateway firmware',
       'in_progress': False,
@@ -62,6 +63,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/lamarzocco/icon.png',
       'friendly_name': 'GS01234 Machine firmware',
       'in_progress': False,
diff --git a/tests/components/nextcloud/snapshots/test_update.ambr b/tests/components/nextcloud/snapshots/test_update.ambr
index be94339b41a..484106580b1 100644
--- a/tests/components/nextcloud/snapshots/test_update.ambr
+++ b/tests/components/nextcloud/snapshots/test_update.ambr
@@ -36,6 +36,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/nextcloud/icon.png',
       'friendly_name': 'my.nc_url.local None',
       'in_progress': False,
diff --git a/tests/components/smlight/snapshots/test_update.ambr b/tests/components/smlight/snapshots/test_update.ambr
index e5f7c34ccf5..ed0085dcdc8 100644
--- a/tests/components/smlight/snapshots/test_update.ambr
+++ b/tests/components/smlight/snapshots/test_update.ambr
@@ -37,6 +37,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/smlight/icon.png',
       'friendly_name': 'Mock Title Core firmware',
       'in_progress': False,
@@ -95,6 +96,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/smlight/icon.png',
       'friendly_name': 'Mock Title Zigbee firmware',
       'in_progress': False,
diff --git a/tests/components/teslemetry/snapshots/test_update.ambr b/tests/components/teslemetry/snapshots/test_update.ambr
index ef66720a0ed..a1213f3d94b 100644
--- a/tests/components/teslemetry/snapshots/test_update.ambr
+++ b/tests/components/teslemetry/snapshots/test_update.ambr
@@ -36,6 +36,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/teslemetry/icon.png',
       'friendly_name': 'Test Update',
       'in_progress': False,
@@ -93,6 +94,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/teslemetry/icon.png',
       'friendly_name': 'Test Update',
       'in_progress': False,
diff --git a/tests/components/tessie/snapshots/test_update.ambr b/tests/components/tessie/snapshots/test_update.ambr
index 5f795007901..1728c13b0ad 100644
--- a/tests/components/tessie/snapshots/test_update.ambr
+++ b/tests/components/tessie/snapshots/test_update.ambr
@@ -36,6 +36,7 @@
   StateSnapshot({
     'attributes': ReadOnlyDict({
       'auto_update': False,
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/tessie/icon.png',
       'friendly_name': 'Test Update',
       'in_progress': False,
diff --git a/tests/components/unifi/snapshots/test_update.ambr b/tests/components/unifi/snapshots/test_update.ambr
index 77fd2c7d8bc..405cb9d52a6 100644
--- a/tests/components/unifi/snapshots/test_update.ambr
+++ b/tests/components/unifi/snapshots/test_update.ambr
@@ -37,6 +37,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/unifi/icon.png',
       'friendly_name': 'Device 1',
       'in_progress': False,
@@ -95,6 +96,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/unifi/icon.png',
       'friendly_name': 'Device 2',
       'in_progress': False,
@@ -153,6 +155,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/unifi/icon.png',
       'friendly_name': 'Device 1',
       'in_progress': False,
@@ -211,6 +214,7 @@
     'attributes': ReadOnlyDict({
       'auto_update': False,
       'device_class': 'firmware',
+      'display_precision': 0,
       'entity_picture': 'https://brands.home-assistant.io/_/unifi/icon.png',
       'friendly_name': 'Device 2',
       'in_progress': False,
diff --git a/tests/components/update/common.py b/tests/components/update/common.py
index edbade8f077..465812e6a3a 100644
--- a/tests/components/update/common.py
+++ b/tests/components/update/common.py
@@ -5,53 +5,16 @@ from typing import Any
 
 from homeassistant.components.update import UpdateEntity
 
-from tests.common import MockEntity
-
 _LOGGER = logging.getLogger(__name__)
 
 
-class MockUpdateEntity(MockEntity, UpdateEntity):
+class MockUpdateEntity(UpdateEntity):
     """Mock UpdateEntity class."""
 
-    @property
-    def auto_update(self) -> bool:
-        """Indicate if the device or service has auto update enabled."""
-        return self._handle("auto_update")
-
-    @property
-    def installed_version(self) -> str | None:
-        """Version currently installed and in use."""
-        return self._handle("installed_version")
-
-    @property
-    def in_progress(self) -> bool | int | None:
-        """Update installation progress."""
-        return self._handle("in_progress")
-
-    @property
-    def latest_version(self) -> str | None:
-        """Latest version available for install."""
-        return self._handle("latest_version")
-
-    @property
-    def release_summary(self) -> str | None:
-        """Summary of the release notes or changelog."""
-        return self._handle("release_summary")
-
-    @property
-    def release_url(self) -> str | None:
-        """URL to the full release notes of the latest version available."""
-        return self._handle("release_url")
-
-    @property
-    def title(self) -> str | None:
-        """Title of the software."""
-        return self._handle("title")
-
-    @property
-    def update_percentage(self) -> int | None:
-        """Update installation progress."""
-        return self._handle("update_percentage")
+    def __init__(self, **values: Any) -> None:
+        """Initialize an entity."""
+        for key, val in values.items():
+            setattr(self, f"_attr_{key}", val)
 
     def install(self, version: str | None, backup: bool, **kwargs: Any) -> None:
         """Install an update."""
@@ -59,10 +22,10 @@ class MockUpdateEntity(MockEntity, UpdateEntity):
             _LOGGER.info("Creating backup before installing update")
 
         if version is not None:
-            self._values["installed_version"] = version
+            self._attr_installed_version = version
             _LOGGER.info("Installed update with version: %s", version)
         else:
-            self._values["installed_version"] = self.latest_version
+            self._attr_installed_version = self.latest_version
             _LOGGER.info("Installed latest update")
 
     def release_notes(self) -> str | None:
diff --git a/tests/components/update/conftest.py b/tests/components/update/conftest.py
index 4fc2a68221e..eae5cc318da 100644
--- a/tests/components/update/conftest.py
+++ b/tests/components/update/conftest.py
@@ -51,7 +51,7 @@ def mock_update_entities() -> list[MockUpdateEntity]:
         ),
         MockUpdateEntity(
             name="Update Already in Progress",
-            unique_id="update_already_in_progres",
+            unique_id="update_already_in_progress",
             installed_version="1.0.0",
             latest_version="1.0.1",
             in_progress=True,
@@ -59,6 +59,17 @@ def mock_update_entities() -> list[MockUpdateEntity]:
             | UpdateEntityFeature.PROGRESS,
             update_percentage=50,
         ),
+        MockUpdateEntity(
+            name="Update Already in Progress Float",
+            unique_id="update_already_in_progress_float",
+            installed_version="1.0.0",
+            latest_version="1.0.1",
+            in_progress=True,
+            supported_features=UpdateEntityFeature.INSTALL
+            | UpdateEntityFeature.PROGRESS,
+            update_percentage=0.25,
+            display_precision=2,
+        ),
         MockUpdateEntity(
             name="Update No Install",
             unique_id="no_install",
diff --git a/tests/components/update/test_init.py b/tests/components/update/test_init.py
index f19b009456a..a354db44bd3 100644
--- a/tests/components/update/test_init.py
+++ b/tests/components/update/test_init.py
@@ -18,6 +18,7 @@ from homeassistant.components.update import (
 )
 from homeassistant.components.update.const import (
     ATTR_AUTO_UPDATE,
+    ATTR_DISPLAY_PRECISION,
     ATTR_IN_PROGRESS,
     ATTR_INSTALLED_VERSION,
     ATTR_LATEST_VERSION,
@@ -92,6 +93,7 @@ async def test_update(hass: HomeAssistant) -> None:
     assert update.state == STATE_ON
     assert update.state_attributes == {
         ATTR_AUTO_UPDATE: False,
+        ATTR_DISPLAY_PRECISION: 0,
         ATTR_INSTALLED_VERSION: "1.0.0",
         ATTR_IN_PROGRESS: False,
         ATTR_LATEST_VERSION: "1.0.1",
@@ -546,10 +548,20 @@ async def test_entity_with_backup_support(
     assert "Installed update with version: 0.9.8" in caplog.text
 
 
+@pytest.mark.parametrize(
+    ("entity_id", "expected_display_precision", "expected_update_percentage"),
+    [
+        ("update.update_already_in_progress", 0, 50),
+        ("update.update_already_in_progress_float", 2, 0.25),
+    ],
+)
 async def test_entity_already_in_progress(
     hass: HomeAssistant,
     mock_update_entities: list[MockUpdateEntity],
     caplog: pytest.LogCaptureFixture,
+    entity_id: str,
+    expected_display_precision: int,
+    expected_update_percentage: float,
 ) -> None:
     """Test update install already in progress."""
     setup_test_component_platform(hass, DOMAIN, mock_update_entities)
@@ -557,13 +569,14 @@ async def test_entity_already_in_progress(
     assert await async_setup_component(hass, DOMAIN, {DOMAIN: {CONF_PLATFORM: "test"}})
     await hass.async_block_till_done()
 
-    state = hass.states.get("update.update_already_in_progress")
+    state = hass.states.get(entity_id)
     assert state
     assert state.state == STATE_ON
+    assert state.attributes[ATTR_DISPLAY_PRECISION] == expected_display_precision
     assert state.attributes[ATTR_INSTALLED_VERSION] == "1.0.0"
     assert state.attributes[ATTR_LATEST_VERSION] == "1.0.1"
     assert state.attributes[ATTR_IN_PROGRESS] is True
-    assert state.attributes[ATTR_UPDATE_PERCENTAGE] == 50
+    assert state.attributes[ATTR_UPDATE_PERCENTAGE] == expected_update_percentage
 
     with pytest.raises(
         HomeAssistantError,
@@ -572,7 +585,7 @@ async def test_entity_already_in_progress(
         await hass.services.async_call(
             DOMAIN,
             SERVICE_INSTALL,
-            {ATTR_ENTITY_ID: "update.update_already_in_progress"},
+            {ATTR_ENTITY_ID: entity_id},
             blocking=True,
         )
 
@@ -1056,6 +1069,7 @@ async def test_update_percentage_backwards_compatibility(
 
     expected_attributes = {
         ATTR_AUTO_UPDATE: False,
+        ATTR_DISPLAY_PRECISION: 0,
         ATTR_ENTITY_PICTURE: "https://brands.home-assistant.io/_/test/icon.png",
         ATTR_FRIENDLY_NAME: "legacy",
         ATTR_INSTALLED_VERSION: "1.0.0",
diff --git a/tests/components/update/test_recorder.py b/tests/components/update/test_recorder.py
index 847a08cfd9c..68e5f93a757 100644
--- a/tests/components/update/test_recorder.py
+++ b/tests/components/update/test_recorder.py
@@ -7,6 +7,7 @@ from datetime import timedelta
 from homeassistant.components.recorder import Recorder
 from homeassistant.components.recorder.history import get_significant_states
 from homeassistant.components.update.const import (
+    ATTR_DISPLAY_PRECISION,
     ATTR_IN_PROGRESS,
     ATTR_INSTALLED_VERSION,
     ATTR_RELEASE_SUMMARY,
@@ -35,6 +36,7 @@ async def test_exclude_attributes(
     assert await async_setup_component(hass, DOMAIN, {DOMAIN: {CONF_PLATFORM: "test"}})
     await hass.async_block_till_done()
     state = hass.states.get("update.update_already_in_progress")
+    assert state.attributes[ATTR_DISPLAY_PRECISION] == 0
     assert state.attributes[ATTR_IN_PROGRESS] is True
     assert state.attributes[ATTR_UPDATE_PERCENTAGE] == 50
     assert (
@@ -54,6 +56,7 @@ async def test_exclude_attributes(
     assert len(states) >= 1
     for entity_states in states.values():
         for state in entity_states:
+            assert ATTR_DISPLAY_PRECISION not in state.attributes
             assert ATTR_ENTITY_PICTURE not in state.attributes
             assert ATTR_IN_PROGRESS not in state.attributes
             assert ATTR_RELEASE_SUMMARY not in state.attributes