First off, never concatenate strings to build a SQL command. It leaves you wide open to accidental or deliberate SQL Injection attack which can destroy your entire database. Always use Parameterized queries instead.
When you concatenate strings, you cause problems because SQL receives commands like:
SELECT * FROM MyTable WHERE StreetAddress = 'Baker's Wood'
The quote the user added terminates the string as far as SQL is concerned and you get problems. But it could be worse. If I come along and type this instead: "x';DROP TABLE MyTable;--" Then SQL receives a very different command:
SELECT * FROM MyTable WHERE StreetAddress = 'x';DROP TABLE MyTable;
Which SQL sees as three separate commands:
SELECT * FROM MyTable WHERE StreetAddress = 'x';
A perfectly valid SELECT
DROP TABLE MyTable;
A perfectly valid "delete the table" command
And everything else is a comment.
So it does: selects any matching rows, deletes the table from the DB, and ignores anything else.
So ALWAYS use parameterized queries! Or be prepared to restore your DB from backup frequently. You do take backups regularly, don't you?
Secondly, that won't even try to work because you don't supply a value in all cases - so SQL doesn't know what to do when the CASE WHEN fails.
But why are you doing it like that at all?
If you want to replace all the NULL entries, just use an AND clause on the WHERE:
UPDATE StudentsTbl SET Book_1 = @ID WHERE ID = @ID AND Book_1 IS NULL