Hi Sarmad Qureshi,
I am Dave, I will help you with this.
Here is the best way to set up a system with a small system drive and large data drive (I have assumed the 1TB drive will be drive D)
1.
Move all your User Library folders to D:
Open Windows File Explorer
In the right hand pane, right click your Documents folder and choose Properties
Select the Location tab
In the Location box, type D:\Documents then click Apply and Ok
When that move completes, do the same for Pictures, Videos and Music
Each time, provide a new folder location, for example, Pictures will go to D:\Pictures
2.
Move the location of all future content downloaded from the Microsoft Store
Open the Settings App (gear icon on your Start Menu)
Go to System - Storage - Change where new content is saved:
Change all options you find there to D
Also, for any Apps or games that you may have downloaded, go to Settings - Apps, then select that game or App and there may be a Move option . .
3.
If you are a Steam Gamer
Stop all processes associated with Steam
Move the Steam folder to your D drive manually
Then open the Steam Control Panel and point that to the new location
4.
Please Note: this should ideally be done before you begin installing any software
For 3rd party applications, some will allow you to choose an installation location, for those, create a new Program files folder on your D drive, then for each application, create a new sub-folder of that folder
Other 3rd party applications will not allow you to change the installation location, and there is no safe way to move those to your D drive . . .