Вот версия CTE.
declare @MyTable table (
NodeId int,
ParentNodeId int,
NodeName char(4)
)
insert into @MyTable
(NodeId, ParentNodeId, NodeName)
select 1, null, 'Lvl1' union all
select 2, 1, 'Lvl2' union all
select 3, 2, 'Lvl3'
declare @MyPath varchar(100)
;with cteLevels as (
select t.NodeId, t.ParentNodeId, t.NodeName, 1 as level
from @MyTable t
where t.ParentNodeId is null
union all
select t.NodeId, t.ParentNodeId, t.NodeName, c.level+1 as level
from @MyTable t
inner join cteLevels c
on t.ParentNodeId = c.NodeId
)
select @MyPath = case when @MyPath is null then NodeName else @MyPath + '/' + NodeName end
from cteLevels
order by level
select @MyPath