You need to format the drive first. Launch Disk Utility
/Applications/Utilities/Disk Utility.app
and go to the Partition tab. Set it to one partition, format to HFS+ (Mac OS Extended, journaled). Choose a name for the drive, like "Big New Drive" or anything else you like.
Click the Options... button, make sure it is set to Apple Partition Map.
Click on the Partition button.