A password modulates a seed phrase, and it becomes and entirely new wallet. You might as well think of it as a 13th seed word. So yes, you can have one “password” for one wallet and another “password” for another. Every password makes a new wallet. 

This is somewhat tricky/confusing, because people don’t always realize that if you lose your password, you lose access to your wallet. 

mewtwo

bitcoin

What's the best defense against a $5 wrench attack?

frostdragon

It would be cool if there was a way to make it so you have a 12 word key and one password makes it give you one wallet and the other, another, I'm not sure, actually, I think since private keys are just 32 bytes it's just a matter of trying two passwords on one byte stream from a word key and checking that both generate valid EC coordinates. Put some decoy sats in one of a small amount and the other has the real money.