The error message seems quite clear. I think you are mixing things up here. If your goal is to install macOS to the SD card listed, then you must first use Disk Utility to erase the whole physical SD card as GUID partition and MacOS Extended (Journaled). Once you do this, the SD card will appear as a valid destination option for installing the full macOS to it.
A very important question is how much storage space does that SD card contain if you want to have a full working macOS installation on the SD card? You need to have enough space for macOS, your apps, your data, and at least 20+GB of Free storage space available at all times. Keep in mind booting macOS from an SD card will most likely be slow and underwhelming even if all these conditions are met. Most people find the smallest Apple SSD of 120GB to be much too small for macOS unless you are just using the laptop to do only the simplest things with very little data being stored.
Currently it appears the SD card contains the macOS High Sierra installer. If it was properly created using the instructions in the following Apple article, then you will need to boot from the USB installer by Option Booting the Mac so you can select the macOS installer from the Apple boot picker menu. Option Booting is when you press & hold the Option key immediately after hearing the startup chime. The macOS USB installer will not show up in the Startup Disk System Preferences.
Create a bootable installer for macOS - Apple Support
Also, Macs can be particular about the drives used for booting.