It's not an external hard drive but a disk drive because my laptop doesn't have a disk slot
Ah, OK...
The external drive is not a hard drive, but an optical drive, which will read CDs and DVDs. Is that correct?
The optical drive is just a hardware device used to read and write to optical disks, and will
not appear on your desktop
until you insert a CD or DVD. Then, assuming the Finder Preferences allow it, you will see the disk appear on your desktop.
You do not need to format anything. A USB DVD drive will work, and you need to insert a disk in the drive so it can be used
Double click to open, or select it from the sidebar list (under Devices), and you will then be able to install your software.
You are running Yosemite (OS X 10.10.5)
From what I read, you may find that Logic Pro 9 is not going to perform very well, and you should probably upgrade to Logic Pro X, which requires the OS X version that you are using (OS X 10.10) or higher.