If this is SQL Server, I'd use a LEFT OUTER JOIN instead. Subqueries and especially
IN
on subqueries perform very poorly and should not be used when a JOIN will do the trick.
UPDATE #Table1
SET [Description]=
CASE
WHEN #Table2.[Column1] IS NOT NULL THEN 'data is match'
ELSE 'Data is not match'
END
FROM #Table1
LEFT OUTER JOIN #Table2
ON #Table1.[Column1]=#Table2.[Column1]