You have an external drive that you intend to use for Apple Time Machine backup, but you’re not able to select the drive for Time Machine in the corresponding preferences.
Check the drive filesystem format.
Apple Time Machine requires that the external drive must be formatted in Mac OS Extended (Journaled) – “HFS+” – with a GUID Partition Table (GPT).
In case you select a differently formatted drive for use with Apple Time Machine, your Mac will automatically prompt you to erase it for Time Machine.
General, HowTos, HowTos: Mac OS X, Know how: Mac OS X, KnowHow, NTFS for Mac OS X
Tags: capsule, mac, machine, os, time
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