Ixpand 32gb _ IOS Yosemite OS X

ah your talking about the encryption software. You do not need that to use the drive. That is only used to unlock files on a computer if you choose to lock them from the iOS device. 

If you want to use it you actually install and run it on the iXpand drive not the Mac HDD. in the install screen (make sure the iXpand drive is connected) just select the iXpand as the install location.