There are 3 ways to test installation of streaming install packages which are unencrypted or encrypted with the /lt makepkg test-encryption switch. See Application Packaging During Development for information on creating streaming install packages.
A package can be streamed from a development PC using xbapp install and specifying the location of package on the development PC:
xbapp install <dev-pc-path-to-xvc>
This method does not support any throughput throttling, so the speed of the streaming install will be dependent on the processor and I/O characteristics of your development machine as well as the bandwidth of the network connection between the development machine and the dev kit. Speeds of 300mb/s+ can be expected over gigabit Ethernet connections with modern development machines with traditional non-SSD hard drives.
A package can be streamed from an http server using xbapp install and specifying the URI to the package:
xbapp install <http-URI-to-package>
If your web server supports bandwidth throttling configuration, this method allows simulation of different network delivery speeds. The Xbox One platform handles internet connection failures and retry logic, so your title should run the same when installing from an internet source as from an optical disc, aside from speed.
A package can be streamed from an optical disc using xbapp install or using the shell the same way an end user would install a title.
xbapp install XO:\<xvc-filename>