Installing OS on external drive (target disk mode)

Boot the older Mac &...

1. Start up from macOS Recovery

To start up from macOS Recovery, turn on your Mac and immediately press and hold one of the following combinations on your keyboard. Command-R is generally recommended, especially if you never installed macOS Sierra 10.12.4 or later… https://support.apple.com/en-us/HT204904#notupdated

Command (⌘)-R

Install the latest macOS that was installed on your Mac.

Option-⌘-R

Upgrade to the latest macOS compatible with your Mac.

Shift-Option-⌘-R

Install the macOS that came with your Mac, or the closest version still available.

2. Decide whether to erase (format) your disk

If you need to erase your disk before installing macOS, select Disk Utility from the Utilities window, then click Continue. You probably don't need to erase, unless you're selling or giving away your Mac or have an issue that requires you to erase. Learn more about when and how to erase.

3. Install macOS

After starting up from macOS Recovery, follow these steps to install macOS:

1. Choose Reinstall macOS (or Reinstall OS X) from the Utilities window.
2. Click Continue, then follow the onscreen instructions to choose your disk and begin installation.
3. If the installer asks to unlock your disk, enter the password you use to log in to your Mac. If it doesn't see your disk, or it says that it can't install on your computer or volume, you might need to erase your disk. 

1. Please allow installation to complete without putting your Mac to sleep or closing its lid. During installation, your Mac might restart and show a progress bar several times, and the screen might be empty for minutes at a time.

If your Mac restarts to a setup assistant, but you're selling or giving it away, press Command-Q to quit the assistant without completing setup. Then click Shut Down. When the new owner starts up the Mac, they can use their own information to complete setup.

If you never installed macOS Sierra 10.12.4

If macOS Sierra 10.12.4 or later was never installed on your Mac, macOS Recovery works differently:

• Command-R is still the recommended way to start up from macOS Recovery. This combination makes sure that the installation isn't associated with your Apple ID, which is important if you're selling or giving away your Mac.
• Option-Command-R installs the macOS that came with your Mac, or the closest version still available.
• Shift-Option-Command-R isn't available.

https://support.apple.com/en-us/HT204904 

How To Do A Factory Reset

Selection A should be used on computers that came with Lion or later when factory new. These models had no disks included when new. Selection B is for Macs that came originally with Snow Leopard or earlier. These models shipped with Software Restore disks when new.

A. Factory reset of your Mac - Apple Support

B. Factory Reset Your Pre-Lion Mac Follow these instructions until you get to Step 6 of Factory reset of your Mac - Apple Support. At Step 5 you will need a Snow Leopard DVD or the installer disc that came with the computer.

1. 1. Boot the computer using the Snow Leopard Installer Disk or the Disk 1 that came with your computer.  Insert the disk into the optical drive and restart the computer. After the chime press and hold down the  "C" key.  Release the key when you see a small spinning gear appear below the dark gray Apple logo.
   2. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities' menu. After Disk Utility loads select the hard drive entry from the left side list (out-dented entry - mfgr.'s ID and drive size.)  Click on the Partition tab in the Disk Utility main window.  Set the number of partitions to one (1) from the Partitions drop down menu, click on Options button and select GUID, click on OK, then set the format type to MacOS Extended (Journaled), then click on the Apply button.
   3. When the formatting has finished quit Disk Utility.  Proceed with the OS X installation and follow the directions included with the installer.
   4. If you are planning to sell or give your computer away, then do the following: After you reformat your hard drive and reinstall OS X, the computer restarts to a Welcome screen and asks you to choose a country or region. If you want to leave the Mac in an out-of-box state, don't continue with the setup of the system. Instead, press Command-Q to shut down the Mac. When the new owner turns on the Mac, the Setup Assistant will guide them through the setup process.

Open Finder preferences and click on the General button. Check all the boxes and select the desired New Finder windows show dropdown menu. If you want folders to open as Tabs, then check that box at the bottom.

Great news, good luck & stay safe! :)

I think that view is set in finder preferences general.

cheers

David