I uploaded a CSV which automatically converted all my columns to varchar. I need to convert the value 22.30 to 0.223.
alter table badv2018
    alter column [BB          
        I need to convert the value 22.30 to 0.223.
You need to devide it by 100.0, then DECIMAL(4, 3) will be OK
DECLARE @Value DECIMAL(4, 3) = 22.3 / 100.0;
SELECT @Value
Returns:
0.223
So, you need to UPDATE your table first, then ALTER the [BB Percent] column.
The easy way is:
DECIMAL(4, 3).--First step
ALTER TABLE badv2018
ADD New DECIMAL(4, 3);
--Second step
UPDATE badv2018
SET New = [BB Percent] / 100.0;
--Third step
ALTER TABLE badv2018
DROP COLUMN [BB Percent];
--The last step
EXEC sp_rename 'badv2018.New', 'BB Percent', 'COLUMN';
Enjoy!
Live Demo
UPDATE:
You can also add a computed column and leave the [BB Percent] column, this way will ensure you can get the real data and the computed one.
ALTER TABLE badv2018
ADD New AS CAST([BB Percent] / 100.0 AS DECIMAL(4, 3));
Make it a wider value. For instance:
alter table badv2018
    alter column [BB Percent] decimal(10, 3) 
(4, 3) can only represent values from 0.000 to 9.999.  You probably really want (6, 3), so 10 is overkill.
You can then add another column with the result you want:
alter table badv2018
    add column bb_ratio as ([BB Percent] / 100);