I encountered the same problem (first using Ubuntu 16.04.1, and then
16.04.2), but only on one of the three pc's I just built. The only
differences between the one which showed the bug and the others, was
that I used another motherboard in the one with the problematic install,
and another brand of DDR4 Ram (same amoount of memory). All other
components (120 GiB SSD, Intel I3 processor, socket 1151) were exactly
the same and brand new.

I used these two motherboards and memory:
ASUS H170-PRO (problematic install),
and
ASUS H170M-PLUS (no problems).

Given that these two motherboards are likely almost the same, this given
might help in solving the problem...

I worked around the problem by choosing the first installation option
instead of 'something else'.

Hope this gives someone an idea about the source of the problem...

Differences between the motherboards according to Asus and setup
utility:

H170M-Plus: 
microATX, 
Gigabit ethernet: Intel I219-V, 
No ordinary PCI slots, 
BIOS: 2002 x64; Build date: 09/20/2016; (ME FW version: 11.0.10.1002).

H170 PRO: 
ATX, 
Gigabit ethernet: Realtek 811H, 
2 ordinary PCI slots, 
BIOS: 2003 x64; Build date: 09/19/2016; (ME FW version: 11.0.10.1002).

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https://bugs.launchpad.net/bugs/1418706

Title:
  UEFI: blank drive incorrectly detected as existing BIOS-mode install

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