Thank you for this help.As per your advice i have changed my
controller to -

$categories = $this->Product->Category->find('list',
array( 'conditions' => array('isActive' => 'Y')));
$this->set(compact('categories'));

And view -

<?php echo $form->select('Product.categoryId', array('options' =>
$categories)); ?>

But it is giving html like this-

<option value=""></option>
<optgroup label="options">
<option value="1">1</option>
<option value="2">2</option>
<option value="3">3</option>

</optgroup>
</select>

But as per my requirement it should be

<option value="">Select</option>
<option value="1">CategoryName1</option>
<option value="2">CategoryName2</option>
<option value="3">CategoryName3</option>
</select>

What change I have to do? Plz help me.

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