Cicerone and Di Stefano defined and studied the class of k-distance-hereditary graphs, i.e., graphs where the distance in each connected induced subgraph is at most k times the distance in the whole graph. The defined graphs represent a generalization of the well known distance-hereditary graphs, which actually correspond to 1-distance-hereditary graphs. In this paper we make a step forward in the study of these new graphs by providing characterizations for the class of all the k-distance-hereditary graphs such that k<2. The new characterizations are given in terms of both forbidden subgraphs and cycle-chord properties. Such results also lead to devise a polynomial-time recognition algorithm for this kind of graph that, according to the provided characterizations, simply detects the presence of quasi-holes in any given graph.