How to format new internal HDD on MacBook Pro
Unfortunately, the Disk Utility UI included in Mac OS has become almost unusable (as you have discovered), but the grunt work can still be done in the Terminal. 

If you're willing to roll up your sleeves and get your hands dirty, visit this page from AppleGazette: http://www.applegazette.com/mac/pro-terminal-commands-using-diskutil/

I would first try simply erasing the disk and see if that gets you where you need to be. On the aforementioned web page, scroll down to the "Format and Erase Drives with diskutil" section and read about formatting and reformatting. Give that a try first and see what happens.

If you have problems with formatting/reformatting, try partitioning the drive instead. To do so, scroll down to the "Partition Drives with diskutil" section and follow the instructions. If done correctly, this should partition your drive and format it in just one step.

Good luck!