They're both correct, but the grammar is different:
"I practised speaking English yesterday."
I practised speaking [English]
This tells us what you practised doing yesterday. 'Speaking' is a verb (gerund form), and it tells us what the activity was that you practised. The object is just 'English'.
"I practised spoken English yesterday".
I practised [spoken English]
In this sentence, the only verb is 'practised'. The object is 'spoken English'. The word 'spoken' is a past participle working as an adjective, and it's describing 'English'. The noun phrase 'spoken English' tells us what kind of English you practised yesterday: you practised 'spoken English' as opposed to 'written English', for example.
I hope that makes sense.