Resolution:
The input parameter should be defined in the translate activity like,

&ltParameter direction="in" eval="constant" type="string" name="Xsl_Param_1"&gtTRANS</Parameter>

in the following translate activity:

    &ltActivity Name="MyTranslate">
        &ltDescription&gtTranslate to remove DBID.</Description>
        &ltAction&gtTranslate</Action>
        &ltParameter direction="in" name="Derived" type="string" eval="constant"&gtfalse</Parameter>
            &ltParameter direction="in" type="string" eval="constant" name="eventState"&gtTRANSLATE</Parameter>
        &ltParameter direction="in" eval="constant" type="string" name="Translator"&gtXSLT</Parameter>
        &ltParameter direction="in" eval="constant" type="string" name="Map"&gtstandard/maps/translate_Exclude_DBID1</Parameter>
        &ltParameter direction="in" eval="constant" type="string" name="OutputFormat"&gtmlXML</Parameter>
        &ltParameter direction="in" eval="constant" type="string" name="Normalize"&gtNone</Parameter>
        &ltParameter direction="in" eval="constant" type="string" name="Xsl_Param_1"&gtTRANS</Parameter>
        &ltParameter direction="in" eval="variable" type="document" name="InDocument"&gtworkDoc</Parameter>
        &ltParameter direction="out" eval="variable" type="document" name="OutDocument"&gtworkDoc</Parameter>
    </Activity>

The input parameter value can be referenced in the XSL as follows:

<?xml version="1.0" encoding="UTF-8" ?>
&ltxsl:transform version="1.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">

    &ltxsl:param name="Xsl_Param_1"/>
    &ltxsl:output method="xml" indent="yes" />
    &ltxsl:template match="/">
        &ltxsl:apply-templates />
    </xsl:template>
    &ltxsl:template match="@*|node()">
        &ltxsl:copy>
            &ltxsl:for-each select="@*">
                &ltxsl:copy />
            </xsl:for-each>
            &ltxsl:apply-templates />
        </xsl:copy>
    </xsl:template>

    &ltxsl:template match="//MasterCatalog/RevisionID/BaseName">
        &ltDBID>
                &ltxsl:value-of select="$Xsl_Param_1"/>
            </DBID>
    </xsl:template>
</xsl:transform>

How to use input Xsl_Params in translate activity?