I think you start with the (uniquely defined) 2D Hilbert space (your notation indicates, it's the space for helicity states of a single photon) and then work in the eigenbasis of the operator ##\hat{h}##, which has eigenvalues ##\pm 1##. I.e., there's an orthonormal basis ##\{|1 \rangle, |-1 \rangle## fulfilling ##\hat{h} |\pm 1 \rangle=\pm |\pm 1 \rangle##.
Then you consider the helicity basis for the helicity of two photons, which is described by the tensor product of the single-photon-helicity space with itself. A Basis for this space is ##|\lambda_1 \lambda_2 \rangle =|\lambda_1 \rangle \otimes |\lambda_2 \rangle##. The resulting Hilbert space is clearly four-dimensional. To understand the tensor product of operators, it's sufficient to know, how they act on product states, since given the linearity of the operators, then you know how the operators act on all linear combinations of product states, and these span the entire Hilbert space:
$$\hat{A} \otimes \hat{B} |\lambda_1 \rangle \otimes \lambda_2 \rangle=(\hat{A} |\lambda_1 \rangle) \otimes (\hat{B} |\lambda_2 \rangle).$$
The operator ##\hat{A} \otimes \hat{B}##, provided it's a self-adjoint operator, which is the case if ##\hat{A}## and ##\hat{B}## are self-adjoint operators, it represents the observable that ##A## is measured on subsystem 1 (i.e., the helicity of one of the photons) and simultaneously ##B## is measured on subsystem 2 (i.e., the helicity of the other of the photons).
Now you prepared the helicities of your photons in the state
$$|\Psi \rangle = \frac{1}{\sqrt{2}} (|1,-1 \rangle - |-1,1 \rangle).$$
This implies that neither of the single photons has a determined helicity. Only the total helicity
$$\hat{H}=\hat{h}_1 + \hat{h}_2 :=\hat{h} \otimes \mathbb{1} + \mathbb{1} \otimes \hat{h}$$
has the determined value 0. ##\hat{H}## means to measure the helicity of photon 1 and the helicity of photon 2 and adding the two values. It's not the operator describing the joint measurement of the two helicities, which would be ##\hat{h} \otimes \hat{h}##.
The observable for the joint measurement of two helicities, represented by ##\hat{h} \otimes \hat{h}## has no determined value, given the preparation in this state, and the probability is ##1/2## for finding helicity +1 for photon 1 and (then necessarily) -1 for the other one or vice versa. The other two possible joint helicity results, i.e., (1,1) or (-1,-1) do not occur at all when the measurement is done on the prepared state.