The symbol $\lvert{P\rangle}$ means "the particle is at the position $P$ in space", i.e.,
$$
\lvert{P\rangle}~~~~~~\mbox{is shorthand for}~~~~~~\lvert{\mbox{particle is at position }P\rangle}\,.
$$
Choose a coordinate system, with $x=0$ as the origin, and suppose that the value of the coordinate $x$ at position $P$ in this coordinate system is $x_P$. Usually, we would label this state as $\lvert x\rangle$, but I am trying to make it clear that the state of the particle should be independent of our labeling/choice of coordinate system. So, instead of labeling the state with the value of its position in the coordinate system, I am labeling the value of the coordinate with the position.
Perform an active translation (by $a$) of the system---which is to say, actively move the particle to some other position in space---in which case the new state of the system is
$$\hat{T}_a\lvert{P\rangle} = \lvert Q\rangle\,,$$
which means that "the particle is now at the position $Q$." Since we are translating by $a$, the value of the position at $Q$ is
$$
x_Q = x_P+a\,.
$$
Now, suppose we measured the position of the particle before and after the transformation. Since it is a measurement of position, it is necessarily tied to a choice of coordinate system, and so it might as well be the one that we have already chosen. The first result must therefore be $x_P$. Then, after translating the system by $a$, we must get $x_Q=x_P+a$ as the result.$^1$
$^1$ We are ignoring the Schrodinger evolution that inevitably results in the particle evolving into a state of ill-defined position. I suppose we could assume that we have confined the particle to a very narrow trap (maybe it's a molecule trapped by optical tweezers!), and we are physically moving the entire apparatus.
At this point, we create a linear operator $\hat{x}$ representing the position of the particle (i.e., a self-adjoint operator corresponding to a dynamical variable). But we have to be careful (as mentioned above), because its possible values are dependent on the coordinate system we chose at the beginning. That is to say, if we act with $\hat{x}$ on the pre- and post-translation states, we'll get the pre- and post-translation positions expressed in our current coordinate system, i.e.,
$$
\hat{x}\lvert P \rangle = x_P\lvert P \rangle\,,~~~~~~~~
\hat{x}\left(\hat{T}_a\lvert P \rangle\right) = \hat{x}\lvert Q \rangle
=x_Q\lvert Q \rangle=(x_P+a)\lvert Q \rangle\,.
$$
(Really, we should be talking about the expectation values of $\hat{x}$ to do this correctly, because then we can talk correctly about measurements, but I think this is fine here.)
All of that is fine. Since we're not changing our coordinate system, none of our operators change, but the state of the particle does and hence so does the value returned by a measurement of the position. But now let's do the opposite. Let's instead translate the origin of our coordinate system by $-a$ while keeping the state of our system fixed. Under this passive transformation,
$$
\lvert P \rangle~~~~~~\mbox{stays as}~~~~~~\lvert P \rangle\,.
$$
However,
$$
\hat{x}\lvert P \rangle = x_P\lvert P \rangle~~~~~~\mbox{must somehow become}~~~~~~\hat{x}\lvert P \rangle = (x_P-a)\lvert P \rangle\,,
$$
but this doesn't make sense, since these can't both be true at the same time. So, instead, we define a new position operator $\hat{x}'$ that measures position with respect to the new coordinate system, i.e.,$^2$
$$
\hat{x}\lvert P \rangle = x_P\lvert P \rangle~~~~~~\mbox{becomes}~~~~~~\hat{x}'\lvert P \rangle = (x_P+a)\lvert P \rangle\,.
$$
Since the position kets $\lvert P \rangle$ are a complete basis, this means that the old and transformed operators are related by
$$
\hat{x}' = \hat{x}+a\,,
$$
and we have established our transformation rule for the position operator under a translation.
To complete this picture, let's translate the system by $a$, act with $\hat{x}$, then translate back, i.e.,
$$
\hat{T}_{-a}\hat{x}\hat{T}_a\lvert{P\rangle}
=
\hat{T}_{-a}\hat{x}\lvert{Q\rangle}
=
\hat{T}_{-a}x_Q\lvert{Q\rangle}
=
x_Q\hat{T}_{-a}\lvert{Q\rangle}
=
x_Q\lvert{P\rangle}
=(x_P+a)\lvert{P\rangle}\,.
$$
The action of $\hat{T}_{-a}\hat{x}\hat{T}_a$ on $\lvert P\rangle$ is the same as the action of $\hat{x}'$. We have established the operator transformation rule
$$
\hat{x}'=\hat{T}_{-a}\hat{x}\hat{T}_a = \hat{x}+a\,.
$$
Note that in the above, we either transform the state (an active transformation that corresponds to the physical act of "moving" the system) or we transform the operator (a passive transformation that corresponds to choosing a different coordinate system). So what is all this about transforming the operators and the states at the same time? There are two possibilities, and while the OP has me leaning toward the former, I think the latter one has some merit, too (at least for the purposes of understanding):
Ballentine is performing both an active transformation of the system by "picking it up and moving it" and a passive transformation to carry the coordinate system along with the system.
Ballentine is playing fast and loose by identifying states and the representations of the states in a basis.
Simultaneous active and passive transformations
The OP suggests that Ballentine is performing both an active transformation of the system by "picking it up and moving it" and a passive transformation to carry the coordinate system along with the system. (This last part is my interpretation.) Let's examine the translation situation as above. To translate the system, we transform the physical state of the system as
$$
\hat{T}_a\lvert P \rangle = \lvert Q \rangle= \lvert P' \rangle\,.
$$
(I'm mimicking Ballentine's notation here by priming the variable $P$, but I like to use a different symbol $Q$ to represent the fact that this really is a different state corresponding to a different position). Let's also transform the coordinate system in such a way that it moves with the system. In this case that means that we are making the transformation
$$\hat{x} \to \hat{x}'=\hat{x} - a
$$(opposite to what we did above when we were trying to show the equivalence between an active transformation in one direction and a passive transformation in the other direction). The action of the passively transformed operator on the actively transformed vector is
$$
\hat{x}'\lvert P' \rangle = (\hat{x} - a)\lvert P' \rangle
= ({x}_{P'} - a)\lvert P' \rangle = (x_P + a -a)\lvert P' \rangle = x_{\textrm{P}}\lvert P' \rangle \,.
$$
The effect is to leave the eigenvalue the same.
A similar argument illuminates his second point. Start with a vector $\lvert \psi \rangle$ expanded in the position basis as
$$
\lvert \psi \rangle = \sum_P \lvert P \rangle \langle P| \psi\rangle\,,
$$
ignoring the vagaries of a continuous basis for the sake of argument. The probability of getting the value $x_{\textrm{P}}$ upon measuring the position as measured in the old coordinate system is $|\langle P | \psi \rangle|^2$, since $\hat{x}$ is the "old" coordinate position operator, and $\hat{x}\lvert P \rangle = x_P\lvert P \rangle$.
Now, we actively transform this state as
$$
\lvert \psi' \rangle = \hat{T}_a\lvert \psi \rangle = \hat{T}_a\sum_P \lvert P \rangle \langle P| \psi\rangle
= \sum_P \hat{T}_a\lvert P \rangle \langle P| \psi\rangle
= \sum_P \lvert P' \rangle \langle P| \psi\rangle
\,.
$$
The probability of getting the value $x_{\textrm{P}}$ upon measuring the position as measured in the new coordinate system is $|\langle P' | \psi' \rangle|^2$, since $\hat{x}'=\hat{x}-a$ is the "new" coordinate position operator, and $\hat{x}'\lvert P' \rangle = x_P\lvert P' \rangle$. If the physical system is translationally invariant, then these probabilities must be the same (because we've translated the coordinate system along with the system!).
But---and here is the part that is unsatisfying to me---these are automatically the same because$^4$
$$
\langle Q'\lvert \psi' \rangle = \langle Q' |\sum_P \lvert P' \rangle \langle P| \psi\rangle
= \sum_P\langle Q' \lvert P' \rangle \langle P| \psi\rangle
=\sum_P\delta_{QP}\langle P| \psi\rangle = \langle Q | \psi \rangle
\,.
$$
Not only are the probabilities the same, the amplitudes are the same. Perhaps I have assumed unitarity somewhere, but if not, it sure seems like we haven't done anything. In other words, this equality of probabilities should be a physical constraint on the formalism that forces unitarity of the transformation operators, but at the same time it seems to be satisfied automatically.
Perhaps the explicit form of the translation operator assumes unitarity, and so I am merely illustrating the idea rather than proving it for this special case, but it's not clear to me how the argument (or "illustration") would really be all that different if I proceeded in more generality.
All that said, this sure seems to be the approach Ballentine is implicitly assuming. That said, the unsatisfying nature of the (lack of) constraint provided by the equality of probabilities makes it so the other interpretation, outlined below, is also a possible way to think about what's going on here.
$^4$ Since $Q$ and $P$ both represent positions in space, the inner product of the corresponding states is only zero if $Q$ and $P$ are the same position. Similarly, since we are translating by the same amount $a$, $Q'$ and $P'$ are the same position if and only if $P$ and $Q$ are, and so $\langle P' | Q' \rangle \neq0$ if and only if $\langle P | Q \rangle \neq0$.
States and operators versus representations of states and operators
The other interpretation is that Ballentine is playing fast and loose by identifying states and the representations of the states in a basis.$^3$ The following somewhat recapitulates what I wrote in this answer.
When we change the basis we are working in, we change the matrix representations of a vector while keeping the interpretation of the vector. That is, if we write a state $\lvert\psi \rangle$ in two different bases as
$$
\lvert \psi \rangle = \sum_n \lvert v_n \rangle \langle v_n| \psi\rangle
=
\sum_j \lvert \varphi_j \rangle \langle \varphi_j |\psi\rangle\,,
$$
then we can identify the two column vector representations of the state $\lvert\psi\rangle$ as
$$
\lvert\psi\rangle_{v\textrm{ basis}}\to
\psi_{\textrm{in basis }v}
=
\left[\begin{array}{c}
\langle v_1| \psi\rangle\\
\langle v_2| \psi\rangle\\
\langle v_3| \psi\rangle\\
\vdots
\end{array}
\right]\,,~~~~~~~~~
\lvert\psi\rangle_{\varphi\textrm{ basis}}\to
\psi_{\textrm{in basis }\varphi}
=
\left[\begin{array}{c}
\langle \varphi_1| \psi\rangle\\
\langle \varphi_2| \psi\rangle\\
\langle \varphi_3| \psi\rangle\\
\vdots
\end{array}
\right]\,.
$$
These represent the same state but are obviously not equal to each other. If we are transforming from the $v$ basis to the $\varphi$ basis, might call the first $\psi$ and the second $\psi'$, indicating that we have "transformed" the state, but we really haven't ($\lvert \psi \rangle$ is $\lvert \psi \rangle$). At the same time, the matrix representations of the operators change, too, because $\langle v_i | \hat{A} | v_j\rangle \neq \langle \varphi_i | \hat{A} | \varphi_j\rangle$. Thus, both "states" and "operators" change in this picture, but what we really should say is that the representations of these objects are the things that are changing.
Then, of course, if $\lvert \psi\rangle$ is an eigenvector of $\hat{A}$ with eigenvalue $a$, then
$$
\hat{A}\lvert \psi\rangle = a\lvert \psi\rangle\,,
$$
no matter what, and so it also must be true that
$$
A_{\textrm{in basis }v} \psi_{\textrm{in basis }v} = a \psi_{\textrm{in basis }v}\,,
~~~~~~~~~
A_{\textrm{in basis }v} \psi_{\textrm{in basis }\varphi} = a \psi_{\textrm{in basis }\varphi}\,,
$$
or, more pointedly,
$$
A\psi = a\psi~~~~~~\mbox{and}~~~~~A'\psi' = a\psi'\,.
$$
Ballentine goes on to talk about what is essentially the inner-product preserving property of unitary transformations, but a basis change between orthonormal bases is unitary, and in that case the inner product between two states and their transformed versions must be the same.
This last part is probably unsatisfying. All I can say is that once you're working with representations, you have to change the "states" (read: representations) under a transformation of coordinates because this is synonymous with a change of basis. But then, since you need to have equality of probabilities, because you haven't changed the state, only its representation, the result follows that the squares of those coefficients need to be the same. So that's possibly further evidence for the take that Ballentine is really talking about representations of vectors/operators and not the objects themselves.
$^2$ It's $x_P+a$ because we've shifted the origin to the left by an amount $a$. Suppose that point $P$ is to the right of the origin; then it should end up farther from the origin in the new coordinate system, and hence its value in the new coordinate system should be larger.
$^3$ He is not alone; Shankar's discussion of this translation stuff is done correctly I think, but he isn't careful about states versus representations of states earlier in his book when first discussing transformations. These are two excellent textbooks written by two physicists who have spent a lot of time thinking very deeply about quantum mechanics. Perhaps it is me that is wrong here, but to the extent that coordinate transformations can be brought about via basis changes, then what follows seems reasonable. And note that there is a correspondence between unitary operators and change-of-basis transformations. One shouldn't think about them in quite the same way, but they have equivalent matrix representations.
Some of this confusion could possibly be mitigated by a better choice of notation, which is what I tried do here by labeling the position state with the name of a point in space rather than the value of its coordinate in a coordinate system. I think we're stuck with $\hat{x}\lvert x\rangle = x \lvert x\rangle $, though, and since there is great utility in labeling/indexing eigenvectors by their eigenvalues, I don't think it's such a bad thing. We just need to be more careful in how we talk about things, especially mixing up identifying objects and their representations. This becomes pretty maddening in quantum field theory, where there are multiple layers of objects: coordinates (which no longer correspond to operators), fields defined on those coordinates (which are operators), Lorentz transformations (whether active or passive) and how they act on coordinates and then Lorentz transformations and how they transform fields and then how they transforms states!, etc. In addition, it is often unclear (at least for me) whether we are performing active or passive transformations or both!