How do I combine 2 select statements into one?

You have two choices here. The first is to have two result sets which will set ‘Test1’ or ‘Test2’ based on the condition in the WHERE clause, and then UNION them together:

select 
    'Test1', * 
from 
    TABLE 
Where 
    CCC='D' AND DDD='X' AND exists(select ...)
UNION
select 
    'Test2', * 
from 
    TABLE
Where
    CCC<>'D' AND DDD='X' AND exists(select ...)

This might be an issue, because you are going to effectively scan/seek on TABLE twice.

The other solution would be to select from the table once, and set ‘Test1’ or ‘Test2’ based on the conditions in TABLE:

select 
    case 
        when CCC='D' AND DDD='X' AND exists(select ...) then 'Test1'
        when CCC<>'D' AND DDD='X' AND exists(select ...) then 'Test2'
    end,
    * 
from 
    TABLE 
Where 
    (CCC='D' AND DDD='X' AND exists(select ...)) or
    (CCC<>'D' AND DDD='X' AND exists(select ...))

The catch here being that you will have to duplicate the filter conditions in the CASE statement and the WHERE statement.