Hello,
Turning on FileVault for your Mac encrypts the internal system drive, not the external one. Regardless, this is an excellent security measure against easy password resets and unathourized access to data, and should remain enabled.
In regards to your external drive, full disk encryption is only supported if your HDD is formatted as one of the following formats:
Mac OS Extended
Mac OS Extended (Journaled)
APFS
The case-sensitive variants of these formats also support full disk encryption. If your external HDD is not formatted as one of these formats, it must be reformatted (erased) before it can be encrypted.
At this point, there's two methods you could use for encrypting your data on the external HDD:
A: Create an encrypted read/write disk image
The following Apple Support article details how to create an encrypted disk image. Be sure to follow the instructions for the "Create a secure disk image" section: Create a disk image using Disk Utility on Mac - Apple Support
Pros:
- You choose the size of the encrypted zone (disk image) on your HDD
- You can add or remove files from the disk image at any time
- The disk image can be converted into other formats (compressed, read-only, etc)
- The disk image can be moved anywhere, and isn't stuck on your HDD.
- The HDD shows up on your desktop even if you haven't unlocked and mounted the encrypted disk image.
- 256-bit encryption is available, which is twice as strong as FileVault (full disk encryption).
Cons:
- Only the disk image is encrypted. Anything else you put on the HDD remains unencrypted.
- You have to mount the disk image before you can modify it, and you must eject the disk image before you can eject the external HDD.
B: Reformat your HDD and encrypt the entire drive
1. Back up all of your data on your external HDD, or move it to a safe location.
2. Open Disk Utility, which is located at /Applications/Utilities. For added safety, eject all other drives.
3. Select your external HDD, then click erase. Format your external HDD as follows:
Name: Whatever you want
Format: Mac OS Extended (Journaled, Encrypted) or APFS (Encrypted)
Scheme: GUID Partition Table
Note: While APFS is a newer file system and has benefits that are detailed here, Mac OS Extended (Journaled) is compatible with almost all releases of OS X and macOS. APFS is only supported on macOS High Sierra and later, and works best on SSDs.
4. Click Erase. When the process is finished, move all of your data back onto your HDD.
Pros:
- The entire HDD is encrypted. Anything you put on it is instantly encrypted on the fly.
- No need to mount an extra disk image and deal with the process of creating one, unless you choose to do so.
- Permits multiple layers of security: If you choose to put an encrypted disk image on the encrypted HDD, you could store super-sensitive files in the disk image, since unlocking the HDD doesn't unlock the disk image inside it.
- This is equivalent to turning on FileVault for your external HDD. As a matter of fact, if you install macOS on this drive afterwards (while it's encrypted), FileVault will behave as if it was already turned on and will prompt you for the disk password you set originally.
- Easily reversible; simply right-click (or Control-click) the HDD in Finder and select Decrypt.
Cons:
- If you choose not to enter your password for the HDD when prompted, it won't appear on the desktop. You'll have to go into Disk Utility, select the drive and then click Mount. Then, after you enter your password, it will reappear on your desktop.
- 256-bit encryption isn't available unless you choose to use an encrypted disk image in conjunction with this.
Hope this helps!