Hi
Yes it does have encryption and you just need to set the hard-drive password. Basically everything is written encrypted to the drive regardless of a password being set or not. When you set the hard-drive password, you are then protecting the keys with a password, so the contents can't be decrypted unless the keys are unlocked.
Intel seem to have some issues with hard-drive passwords on their own mother boards, despite the irony that they promote their own SSDs security abilities, so hopefully you either have a non-Intel motherboard or one of the ones that supports it.
Regards
Phil