You could change this specific string using REPLACE:
REPLACE('100001','10','11')
But in general, that would not work - e.g. it would not work for the string '100010', because it would change the 2nd and 6th characters both to 1.
To specificy a particular character position for change you must use SUBSTR:
SUBSTR(string,1,1) || '1' || SUBSTR(string, 3)
This takes the first character, appends a '1', and then appends the rest of the string from position 3 (omitting position 2).