DECLARE @Data TABLE
    (
    Sequence    TINYINT NOT NULL PRIMARY KEY,
    Subset  CHAR(1) NOT NULL
    )
INSERT INTO @Data (Sequence, Subset) VALUES
    (1, 'A'),
    (2, 'A'),
    (3, 'A'),
    (4, 'B'),  -- New subset
    (5, 'B'),
    (6, 'A')   -- New subset

SELECT
    Sequence, Subset,
    ROW_NUMBER() OVER (PARTITION BY Subset ORDER BY Sequence) AS SeqWithinGroup
FROM
    @Data

Sequence Subset Expected Actual
-------- ------ -------- -----
1        A      1        1
2        A      2        2
3        A      3        3
4        B      1        1
5        B      2        2
6        A      *1*      *4*

SELECT
    Sequence, Subset,
    CASE WHEN Sequence = 1 OR Subset <> LAG(Subset, 1) OVER (ORDER BY Sequence)
        THEN 'New subset'
        ELSE 'Continuation'
        END
FROM
    @Data