The California instructions for Schedule D state that you need to use the form only if there is a difference between your California and federal capital gains and losses. Because California treats capital gains as ordinary income, TurboTax will generally transfer this information to the state return, where you can adjust specific items if needed.
The California Form 540 starts with your Federal Adjusted Gross Income and summarizes any differences between Federal and California on Schedule CA where the additions and subtractions are listed.
The California tax return Form 540 package will include a California Schedule D if you have any California capital gains and losses from the entries you make while completing the Federal return.
TurboTax will ask questions in the California interview in order to capture any information needed to adjust the entries on the California Schedule D. In order to help ensure accurate calculations, answer the questions in the interview about any capital gains subject to California tax.
See these California FTB instructions for capital gains and losses for more information.
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