External CD-Rom USB port outdated?

I recently purchases an external CD-Rom drive and it doesn't seem to be working. I'm using a Lenovo IdeaPad Y510p with Windows 8. The laptop recognizes it and I'm able to click on it and everything. But, when i do it just says to insert the disk, even though the disk is already inside. I checked the properties and it says it's working properly. When I troubleshooted it, it stated the following:

USB Mass Storage "Device is an older USB device and might not work with USB 3.0"

Plug the device into an available USB 2.0 port, and click Next. Otherwise, click Cancel.

I don't understand what I'm supposed to do with this.

It sounds more like it is broken, physically. Its just not reading CDs. Disk drives are fairly universal and don't need special driver installation. I'm doing the same thing. I don't have a disk drive on a computer I build and just use an external enclosures. Many of these enclosures can be disassembled and you can replace the drive. So if you have an old computer you can take it's disk drive.

As you have 2xUSB 2 ports why don't you try them. If it still does not work then it must be faulty.
I assume your built in optical drive is also not working

USB ports are all, backwards compatible.