I'm not that familiar with Total Drive, but it seems completely distinct and different from iCloud Drive.
Total Drive is, at heart, a backup storage solution. You designate content on your device(s) to get backed up, and Total Drive backs them up. End of story. As a separate service, it does not appear to affect your iCloud Storage in any way.
It also costs $99/year, or $11.99 a month, so I'm not sure where the $1.99 price tag you're referring to comes from - that's an optional charge to add more capacity to your iCloud Storage plan from Apple.
iCloud Storage can also act as a backup repository, and synch across devices. The main advantage of iCloud Storage is its integration into the OS for things like application/data offload (so the OS automatically offloads idle or little-used applications and data (photos, music, documents, etc) and seamlessly download them any time you try to open them (compared to manually having to download the content that you want).
Either way, both Total Drive and iCloud Storage offer certain advantages. It's up to you to determine which one (if any) offers you the most value.