Hi @breadstick9, welcome to CF!
It sure sounds like an open and shut case that the HDD has failed, but there are few things worth checking first - are you able to open the HDD panel and double check the drive is (a) present - depending on where you got this from the HDD may have been removed and (b) firmly connected properly?
As for what OS to load – the unit probably came with 7, and should just about run Windows 10 properly - is there a licence sticker on the laptop? AFAIK you can still use a 7 key with Windows 10.
Otherwise as the hardware is a little older, you might get a bit more performance using something such as Linux Mint.