What does red disk name in Disk Utility mean?

I've got a second HDD installed and noticed that  Disk Utility displays its name in red instead of the usual black and partitions are not visible underneath. It's currently going through the process of encryption. What does the disk name in red mean?

Since my last post I rebooted and I no longer have any device in red text in Disk Utility. But what I have now looks strange too.
I created two partitions, called "Time Machine" and "HDD", which I subsequently encrypted. I can no longer see the physical disk in Disk Utility. The partitions I created appear as root devices, with what looks to be their respective encrypted logical drives inside each bearing the same name as the root device.
Here's the output from the command you asked for:
$ diskutil cs list
CoreStorage logical volume groups (2 found)
|
+-- Logical Volume Group XX
|   =========================================================
|   Name:         Time Machine
|   Size:         149521805312 B (149.5 GB)
|   Free Space:   16777216 B (16.8 MB)
|   |
|   +-< Physical Volume XX
|   |   ----------------------------------------------------
|   |   Index:    0
|   |   Disk:     disk1s4
|   |   Status:   Online
|   |   Size:     149521805312 B (149.5 GB)
|   |
|   +-> Logical Volume Family XX
|       ----------------------------------------------------------
|       Encryption Status:       Unlocked
|       Encryption Type:         AES-XTS
|       Conversion Status:       Complete
|       Conversion Direction:    -none-
|       Has Encrypted Extents:   Yes
|       Fully Secure:            Yes
|       Passphrase Required:     Yes
|       |
|       +-> Logical Volume XX
|           ---------------------------------------------------
|           Disk:               disk4
|           Status:             Online
|           Size (Total):       149186256896 B (149.2 GB)
|           Size (Converted):   -none-
|           Revertible:         Yes (unlock and decryption required)
|           LV Name:            Time Machine
|           Volume Name:        Time Machine
|           Content Hint:       Apple_HFS
|
+-- Logical Volume Group XX
     =========================================================
     Name:         HDD
     Size:         350107865088 B (350.1 GB)
     Free Space:   16777216 B (16.8 MB)
     |
     +-< Physical Volume XX
     |   ----------------------------------------------------
     |   Index:    0
     |   Disk:     disk1s2
     |   Status:   Online
     |   Size:     350107865088 B (350.1 GB)
     |
     +-> Logical Volume Family XX
         Encryption Status:       Unlocked
         Encryption Type:         AES-XTS
         Conversion Status:       Converting
         Conversion Direction:    forward
         Has Encrypted Extents:   Yes
         Fully Secure:            No
         Passphrase Required:     Yes
         |
         +-> Logical Volume XX
             Disk:               disk2
             Status:             Online
             Size (Total):       349772316672 B (349.8 GB)
             Size (Converted):   29374808064 B (29.4 GB)
             Revertible:         Yes (unlock and decryption required)
             LV Name:            HDD
             Volume Name:        HDD
             Content Hint:       Apple_HFS
As seen in Disk Utility:

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