Hi broken, no you shouldn't have to do a low level format on the single drive.
Have a look inside your case - do you have any more SATA ports?
If you switch that setting to SATA - you won't be able to have raid at all - except software raid...which would do pretty much the same thing you're after....
hrmmm......
That's your call really

It just means that the RAID will be controlled by Windows, and not by the hardware itself...