I need to describe and sketch the set of complex numbers satisfying the conditions (|z|-1)(|z|-2) ≤ 0 and Im(z) > 0.
This is what I have done:
Solved the inequality for (|z|-1)(|z|-2) ≤ 0 which turns out to be 1 ≤ |z| ≤ 2. I then let |z| = √(x^2 + y^2) and squared the inequality giving 1 ≤ x^2 + y^2 ≤ 4 and let Im(z) = y giving y > 0.
Then sketching it we have,
Do the description and sketch look correct for this question?

You have that
The inequality $|z| \geq 1$ represent the complement of the open circle with radius $1$ and center in $0$.
The inequality $Im(z)>0$ represent the open upper half-plane.
Thus your pic is not correct even though the idea is right.