check this.
Use databaseX
insert into databaseY.dbo.XYZ(column1,column2,column3,Column4)
select column1,column2,column3,"your update value"
from dbo.XYZ
or
insert into databaseY.dbo.XYZ(column1,column2,column3,Column4)
select column1,column2,column3,"your update value"
from databaseX.dbo.XYZ