Q: Used iPod Touch 5th Generation Has Password

No, a computer with an internet connection and iTunes is required.

Place the iOS device in Recovery Mode and then connect to your computer and restore via iTunes. The iPod will be erased.

If you forgot the passcode for your iPhone, iPad, or iPod touch, or your device is disabled

If recovery mode does not work try DFU mode.                         

How to put iPod touch / iPhone into DFU mode « Karthik's scribblings            

Connect the iOS device to your computer and restore via iTunes. Place the iOS device in Recovery Mode if necessary to allow the restore.

If recovery mode does not work try DFU mode.

How to put iPod touch / iPhone into DFU mode « Karthik's scribblings

For how to restore:

Use iTunes to restore your iPhone, iPad, or iPod to factory settings

However, if it has iOS 7 or later (current iOS is 9,2,1) and is signed into iCloud it has activation lock and you will have to enter the ID and password last used in Settings>iCloud

Find My iPhone Activation Lock

The previous owner can do this

Turn off Find My iPhone Activation Lock

Otherwise is  wordthless to you. Apple will not help