Edit: 6n±1 method
In case it's useful to anyone, here's a much more efficient method for testing whether a number is prime or composite.  It's a Batch language adaptation of the 6n±1 algorithm mentioned by several people on this post.
@echo off & setlocal enabledelayedexpansion
if "%~1"=="" goto usage
for /f "delims=0123456789" %%I in ("%~1") do goto usage
if %~1 LEQ 1 (
    echo %~1 is neither prime nor composite.
    exit /b 1
) else if %~1 LEQ 3 (
    echo %~1 is prime.
    exit /b 0
)
set /a "mod2or3 = ^!(%~1 %% 2) | ^!(%~1 %% 3), half = %~1 / 2"
if %mod2or3% EQU 1 (
    echo %~1 is composite.
    exit /b 1
)
for /L %%I in (5,6,%half%) do (
    set /a "n6pm1 = ^!(%~1 %% %%I) | ^!(%~1 %% (%%I + 2))"
    if !n6pm1! EQU 1 (
        echo %~1 is composite.
        exit /b 1
    )
)
echo %~1 is prime.
goto :EOF
:usage
echo Usage: %~nx0 integer
goto :EOF
Original answer:
Thought I might accept the challenge.
@echo off
setlocal enabledelayedexpansion
if "%~1"=="" goto usage
for /f "delims=0123456789" %%I in ("%~1") do goto usage
set /a limit = %~1 - 1
for /L %%I in (2,1,%limit%) do (
    set /a modulo = %~1 %% %%I
    if !modulo! equ 0 (
        echo %~1 is composite ^(divisible by %%I^).
        goto :EOF
    )
)
echo %~1 is prime.
goto :EOF
:usage
echo Usage: %~nx0 integer
You had commented under Dominique's answer, "So how do I fix this?"  Take the first part of your script:
set /a prime=7
set /a num1=2
set /a num2=2
:do1
if %prime% == %num1% * %num2% goto do_if_1
Since you've been informed by both Squashman and myself that if %prime% == %num1% * %num2% is not going to work as you intend, you should now know that you need to insert an additional set /a above your if statement to perform %num1% * %num2%.
set /a prime=7
set /a num1=2
set /a num2=2
:do1
set /a product = num1 * num2
if %prime% == %product% goto do_if_1
Let's continue...
...
if %prime% == %product% goto do_if_1
if else %prime% LSS %num1% * %num2% set /a num2=%num2%+1
There are two immediate problems here.  #1, I think you probably meant else if, not if else.  #2, in batch scripting, else needs to be included as a part of the if command you're else-ing.  This means else either needs to be appended to the end of the previous line, or you should use some parentheses.  Rewrite it like this:
if %prime% == %product% (
    goto do_it_1
) else if %prime% LSS %product% (
    set /a num2 += 1
) else etc...