Proof that $X \subseteq Y$ if and only if $X \cup Y = Y$
To prove a statement of the form $A \iff B$, you need to show that both implications $A \implies B$ and $B \implies A$ hold. I will sketch both directions but leave a few details for you to fill in.
First let's prove $X \subseteq Y \implies X \cup Y = Y$.
To do this, we assume that $X \subseteq Y$, and we need to prove that $X \cup Y = Y$. To prove equality of two sets, we need to prove containment in both directions: namely $X \cup Y \subseteq Y$ and $Y \subseteq X \cup Y$.
To prove the first containment $X \cup Y \subseteq Y$, start with the assumption $X \subseteq Y$. This implies that $X \cup Y \subseteq Y \cup Y$ (why?), and of course $Y \cup Y = Y$, so we conclude that $X\cup Y \subseteq Y$ as desired.
The second containment $Y \subseteq X \cup Y$ is always true and doesn't even require the assumption that $X \subseteq Y$ (why?)
Now let's prove $X \cup Y = Y \implies X \subseteq Y$.
So, assume that $X \cup Y = Y$. The containment $X \subseteq X \cup Y$ always holds (why?). By the assumption, the RHS of this containment equals $Y$. Thus $X \subseteq Y$ as desired.