(Brief introduction about spin for a $1/2$ particle)
If for a particle with spin $s=1/2$ the set of commuting operators $\left\{S_y,\boldsymbol{S}^2\right\}$ is chosen as basis, then one may label the states according to the $\pm 1/2$ eigenstates of $S_y$ (I will use the following notation instead of your simplified one because it will be useful when addressing your second point of the question)
$$S_y|S_y;\pm\rangle=\pm\frac{1}{2}|S_y;\pm\rangle\tag{1}\label{sy}$$
with total angular momentum
$$\boldsymbol{S}^2|S_y;\pm\rangle=\frac{3}{4}|S_y;\pm\rangle\tag{2}\label{s2}$$
One may introduce raising and lowering operators as $S_\pm=S_x\pm \mathrm{i}S_z$ whose actions yield
$$S_+|S_y;+\rangle=0,\quad S_+|S_y;-\rangle=|S_y;+\rangle\tag{3}\label{s+}$$
along with
$$S_-|S_y;-\rangle=0,\quad S_-|S_y;+\rangle=|S_y;-\rangle\tag{4}\label{s-}$$
(Moving to a system of two particles of spin $1/2$)
The total spin along $Oy$, whose eigenvalue you seek to be null, that it $s_y^\mathrm{tot}=0$ (notice I denoted the eigenvalue with small letter in order to not cause any confusion) would be given by
$$S_y^\mathrm{tot}=S_y^1\otimes\mathsf{I}_2+\mathsf{I}_1\otimes S_y^2\tag{5}\label{sytot}$$
This may seem just spin with extra steps but I always find it useful when I know on which space the operators act (the identity was denoted by $\mathsf{I}$).
There aren't many possibilities. Direct computations show that states of the type $|S_y;+\rangle|S_y;+\rangle$ would yield $s_y^{tot}=1$, states $|S_y;-\rangle|S_y;-\rangle$ give $s_y^{tot}=-1$. Nevertheless, the states $|S_y;+\rangle|S_y;-\rangle$ and $|S_y;-\rangle|S_y;+\rangle$ result in, via direct computation using \eqref{sytot}, the eigenvalue $s_y^{tot}=0$. Therefore, a state with $s_y^{tot}=0$ must be a linear combination of the type
$$|s_y^{tot}=0\rangle=a|S_y;+\rangle|S_y;-\rangle+b|S_y;-\rangle|S_y;+\rangle\tag{6}\label{state}$$
where the coefficients must of course satisfy $a^2+b^2=1$ as a normalization condition. This is a result which you also obtained but I just wanted to go through it with my notation.
On the other hand, the total spin of a composite system may be expanded as
$$\boldsymbol{S}^2=(\boldsymbol{S}^1)^2\otimes\mathsf{I}_2+\mathsf{I}_1\otimes(\boldsymbol{S}^2)^2+2\boldsymbol{S}^1\otimes\boldsymbol{S}^2\tag{7}\label{s2tot}$$
It is useful to express the term $\boldsymbol{S}^1\boldsymbol{S}^2$ (I'm dropping the direct product term since too much rigurosity is slowing my typesetting) as
$$\boldsymbol{S}^1\boldsymbol{S}^2=\underbrace{S_x^1S_x^2+S_z^1S_z^2}_{\displaystyle \dfrac{1}{2}(S_+^1S_-^2+S_-^1S_+^2)}+S_y^1S_y^2\tag{8}\label{s1s2}$$
Now one may proceed to act with the total spin from \eqref{s2tot}, along with the term from \eqref{s1s2}, on the proposed state \eqref{state}. The computation is not difficult, it just uses repeatedly the action of the operators from \eqref{sy}, \eqref{s2}, \eqref{s+} and \eqref{s-}. There might be a shorter more elegant way to derive it than with raising and lowering operators. Nevertheless, the final result reads
$$\boldsymbol{S}^2|s_y^{tot}=0\rangle=(a+b)|S_y;+\rangle|S_y;-\rangle+(a+b)|S_y;-\rangle|S_y;+\rangle $$
One is interested in states having $s^\mathrm{tot}=1$ which imply
$$\boldsymbol{S}^2|s_y^{tot}=0\rangle=\underbrace{s^\mathrm{tot}(s^\mathrm{tot}+1)}_{\displaystyle 2}|s_y^{tot}=0\rangle\stackrel{\eqref{state}}=2a|S_y;+\rangle|S_y;-\rangle+2b|S_y;-\rangle|S_y;+\rangle$$
Therefore $a=b$ and along with $a^2+b^2=1$ and assuming $a,b\in\mathbb{R}$, the state characterized by $s_y^{tot}=0$ and $s^{tot}=1$ is
$$|s_y^{tot}=0, s^{tot}=1\rangle=\frac{1}{\sqrt{2}}(|S_y;+\rangle|S_y;-\rangle+|S_y;-\rangle|S_y;+\rangle)\tag{9}\label{finalstate}$$
Now that we have the state, the following question was how to express it in the basis (for each particle) labeled by the eigenvalues of $\left\{S_z,\boldsymbol{S}^2\right\}$ (at least this is how I understood it, correct me if I am mistaken).
This would somehow assume that you now do a measurement of spin along another axis, which should erase the information measured before. It is then fair to assume that it is equally probable to obtain projections of spin along $Oz$ of $\pm 1/2$, irrespective of what you obtained before along $Oy$, thus
$$|\langle S_y;+|S_z,+\rangle|^2=|\langle S_y;-|S_z,+\rangle|^2=\frac{1}{2}$$
Consequently, one may expand
$$|S_z,+\rangle=\underbrace{\langle S_y;+|S_z;+\rangle}_{\displaystyle\dfrac{1}{\sqrt{2}}}|S_y;+\rangle+\underbrace{\langle S_y;-|S_z;+\rangle}_{\displaystyle\dfrac{1}{\sqrt{2}}}|S_y;-\rangle$$
and similarly (but with a change in sign which will be explained immediately)
$$|S_z,-\rangle=\underbrace{\langle S_y;+|S_z;-\rangle}_{\displaystyle\dfrac{1}{\sqrt{2}}}|S_y;+\rangle+\underbrace{\langle S_y;-|S_z;-\rangle}_{\displaystyle-\dfrac{1}{\sqrt{2}}}|S_y;-\rangle$$
where the change in sign is chosen in order to assure
$$|\langle S_z;+|S_z,-\rangle|=0$$
Therfore, you have your $\left\{|S_y;\pm\rangle\right\}$ basis expressed in terms of $\left\{|S_z;\pm\rangle\right\}$ as
$$|S_y;+\rangle=\frac{1}{2}(|S_z;+\rangle)+|S_z;-\rangle),\quad|S_y;-\rangle=\frac{1}{2}(|S_z;+\rangle)-|S_z;-\rangle)$$
which allow you to immediately express your state from \eqref{finalstate} in this basis now labeled by the eigenstates of $S_z^1,S_z^2$.