High Sierra's Disk Utility Does Not Recognize Unformatted Disks (tinyapps.org)
macOS 10.13's Disk Utility 17.0 (1626) does not recognize raw drives, reads a blog post, shared by several readers. From the post: Diskutil does recognize the drive. We'll use it to perform a quick, cursory format (e.g., diskutil eraseDisk JHFS+ NewDisk GPT disk0) to make the disk appear in Disk Utility, where further modifications can more easily be made. Plugging in an unformatted external drive produces the usual alert, "The disk you inserted was not readable by this computer. Initialize... | Ignore | Eject", but clicking Initialize just opens Disk Utility without the disk appearing. There's an option in Disk Utility to view "all devices," but clicking that doesn't show raw disks, the blog post adds.
Complete nonsense, imac's dont have glued in screens at all, they are held in place by a magnetic interference fit and can be removed in under a minute with a sucker clamp. The HD is then easily accessible and replaceable. It has been this way since the first Aluminium unibody imacs 10 years ago. Imac's are very easy to work on.
I ran into this exact problem today. Clicking "Initialize..." did nothing, with the drive not showing up in Disk Utility.
Turned the enclosure off and back on, and clicked "Ignore." Disk came right up in the Utility without issues, and I was able to get it working from there.
The world moves for love. It kneels before it in awe.
https://www.ifixit.com/Teardown/iMac+Intel+27-Inch+Retina+5K+Display+Teardown/30260
See Step 4.