The code you have mentioned is not valid in ORACLE.
You can try the code given below:
UPDATE table1 SET table1.value = (SELECT table2.CODE
FROM table2
WHERE table1.value = table2.DESC)
WHERE table1.UPDATETYPE='blah'
AND EXISTS (SELECT table2.CODE
FROM table2
WHERE table1.value = table2.DESC);
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Or else you can use this code:
UPDATE
(SELECT table1.value as OLD, table2.CODE as NEW
FROM table1
INNER JOIN table2
ON table1.value = table2.DESC
WHERE table1.UPDATETYPE='blah'
) t
SET t.OLD = t.NEW