Replacing the Tivo Bolt internal HD

Tivo forum newbie.

I have a Tivo Bolt 500GB. Bought this year. (2016)

I tried connecting an external 3TB Fantom esata drive and Bolt says it doesn't support it (formatted for NTFS), and still doesn't (formatted for MAC extended (journaling)).

So, I am planning to order a
Seagate 4TB Laptop HDD SATA 6Gb/s 128MB Cache 2.5-Inch Internal Hard Drive (ST4000LM016) from Amazon.

What steps to replace it as the internal Bolt HD? And, will it use the entire 4TB, or format it up to 2TB and quit?

Any special software needed to prepare it?

Any special hardware setup needed to test/format/??

[For testing, formatting, etc I have an iMac with latest OS X El Capitan. I also have Parallels with Win 7 Pro installed on the iMac, so I can run either Mac or Win software on it. Does that even matter?]