Time Machine says both of my external hard drives require reformatting to case insensitive. What do I do?

I have been successfuly using Time Machine to back my iMac  to an external hard drive (via usb) and everything has been fine for the last year. I have been using TM to back up to a HD called Terra LaCie via usb.
A week ago, my iMac hard drive was full--so I spulrged and bought a 6 TB external hard drive (Western Digital My Book-Thunderbolt). I set up the new Thunderbold HD to use RAID 1 (mirror) and copied most of my iMac hard drive over to the Thunderbolt HD.
I kept my working photographs (most recent) on my iMac and felt good to know my older photographs are on my new Thunderbolt hard drive.
For a few days, Time Machine seemed to work fine (backing up my iMac to Terra LaCie HD. I haven't been concerned with backing up the Thunderbolt drive (as I feel that mirroring is same as backing up).
Yesterday, Time Machine indicated the lastest back-up failed (for the HD called Terra LaCie). Now, when I go into Time Machine, the dialog box indicates the following message:
"Are you sure you want to erase the backup disk “Terra Lacie”? Erasing will destroy all information on the disk and can’t be undone.
The disk must be erased before it can be used for Time Machine backups because a disk you are backing up is case sensitive, but the backup disk is not."
When I open Time Machine to look at my external hard drives (I also have a third usb portable drive); two of the three drives indicate the following:
"reformat required; case insensitive disk".
The small, portable hard drive (that I'm also using) doesn't say it needs to be reformated (but my new Thunderbolt and my old usb HD both indicate the same message (above).
What should I do? I just spent days transferring my photographs from my iMac to my new Thunderbolt. Should I just not use Time Machine any longer and work from my Thunderbolt drive?
Am I to understand that my iMac suddenly become case sensitive? Sorry if this was too much information about my hard-ware set-up.
Any help someone can provide me would be greatly appreciated. I suppose I need to understand Time Machine and perhaps my Thunderbolt better.

Hi BDAqua,
Bravo, you helped me solve my problem.
The Case Sensitive Disk was the small portable hard drive that I was using termporarily.
I just disconnected it and I started TM machine and everything seems to be working just fine.
Thank you very much!!!!

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