It's bad but not unplayable, certainly at 1550 level and the continuation you give exacerbates black's problems. I think in the absence of an opening book the computer struggles to find the best moves in the opening.
There are a number of problems:
- Black has pretty much ceded the center
- Lost castling rights leaving the king stranded on an open file, although the queens coming off makes this much less of a problem.
- Awkward development
- The c5 pawn would be much better on c6 controlling both d5 and b5
- The fundamental idea of playing c5 against white's e4 opening is to fight for the h8-a1 diagonal. This means putting a bishop on g7 and maybe a pawn on d6. That just isn't going to happen in this kind of setup.
After 3... dxc5 my Stockfish running on my computer gives about +1.35 after letting it run for a while, coming down from higher levels. It much prefers, what is a standard idea in these kinds of positions, 3... Qa5+ followed by Qxc5 which it evaluates at about +0.75.
Compare this with "Yawn" variation of the Black Lion:
[Title "Black Lion - 'Yawn' variation"]
1. e4 d6 2. d4 Nf6 3. Nc3 e5 4. dxe5 dxe5 5. Qxd8 Kxd8
Black has again given up castling rights and the king is again on an open file but development is much easier and the e5 pawn gives a firm grip of the center. For black it is going to be important to control both b5 and d5 to prevent the white knight going to either of those two squares from c3. In the Black Lion position that can be achieved by one move, c6. In your position with the pawn already on c5 it takes two moves, a6 and e6.
With the queens off my Stockfish evaluates this as about +0.45.
Incidentally, my Stockfish prefers a more flexible arrangement for black delaying commitment of the b8 knight and instead safeguarding against white knight infiltration by playing e6 and a6 immediately:
1. e4 d6 2. d4 c5 3. dxc5 dxc5 4. Qxd8 Kxd8 5. Nc3 e6 6. Be3 a6
which it evaluates at +1.15