Before you can install macOS to the new drive, you'll need to format the drive so the installer can recognize it.

Open Disk Utility from the recovery menu, select your drive, and click the Erase button toward the top of the Disk Utility window.

Make up a name for your drive, and make sure the format is set to Mac OS Extended (Journaled) or APFS. If there is a "Scheme" option, set it to GUID Partition Map.

If you don't see your drive listed in the Disk Utility menu, select Show All Devices from the View section of the menu bar.

Once the new drive is formatted, press Command + Q to exit Disk Utility and return to the recovery menu.