DECLARE @table TABLE
    (
         ID INT
        ,Mask VARCHAR(8)
    )

    INSERT INTO @table
    SELECT 1, '1010011' UNION ALL
    SELECT 2, '0000111'


    SELECT          T.ID, T.Mask
                    ,STUFF((SELECT ', ' + CAST([Bit] AS VARCHAR(10)) [text()]
                     FROM (
                                SELECT [Bit]
                                FROM    (
                                            SELECT  1 AS [Bit]
                                                    ,SUBSTRING(Mask, 1, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  2 AS [Bit]
                                                    ,SUBSTRING(Mask, 2, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  3 AS [Bit]
                                                    ,SUBSTRING(Mask, 3, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  4 AS [Bit]
                                                    ,SUBSTRING(Mask, 4, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  5 AS [Bit]
                                                    ,SUBSTRING(Mask, 5, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  6 AS [Bit]
                                                    ,SUBSTRING(Mask, 6, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  7 AS [Bit]
                                                    ,SUBSTRING(Mask, 7, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                            UNION ALL
                                            SELECT  8 AS [Bit]
                                                    ,SUBSTRING(Mask, 8, 1) AS [Value]
                                            FROM    @table M
                                            WHERE   M.ID = T.ID
                                        ) Mask
                                        WHERE Mask.Value = 1
                                    ) SetBits
                     WHERE ID = t.ID
                     FOR XML PATH(''), TYPE)
                    .value('.','NVARCHAR(MAX)'),1,2,' ') List_Output
    FROM            @table T