OS X: "Some features of Mac OS X are not supported for the disk (volume name)" appears during installation

Why does this message appear?

This message means the installer cannot create the Recovery system on your hard disk. Recovery offers on-disk recovery tools, allows you to restore from Time Machine backups, reinstall OS X via the Internet, or set a firmware password. Recovery is not needed to install and run OS X, or to access most of its capabilities and new features.

Usually, this message appears in one of two scenarios:

• The disk you are installing on is a RAID volume
  or
• The disk has a non-standard Boot Camp partition setup, in which further partitioning was performed after running Boot Camp Assistant, or the configuration that Boot Camp Assistant created was manually modified
   

What will happen if I continue to install?

Recovery is not needed to install and run OS X, or to access most of its capabilities and new features, but some features are not available without a Recovery partition installed on your computer. You will be able to run OS X and all your favorite, compatible software titles. Many of the new features of OS X will be available to you.

You won't be able to use FileVault disk encryption to secure your data. You won't have the on-disk utilities for disk repair and setting a firmware password.
 

What can I do ensure I get all OS X features when upgrading from Snow Leopard?

Make a full backup of your hard disk and all of its data (including your Boot Camp partition, which is not normally backed up by Time Machine), then erase your hard disk and create a single Mac OS Extended (Journaled) partition.

Reinstall Mac OS X v10.6 Snow Leopard, then re-download the OS X installer from the Mac App Store and retry your install.

If you use Boot Camp, you can run Boot Camp Assistant after installing OS X to create a new Boot Camp partition, then restore the data from the backup you made of your previous Boot Camp partition.

You can also use the OS X installer from the Mac App Store to create an external bootable volume, complete with a Recovery partition. See About OS X Recovery for more details. This approach will create a bootable drive with Recovery which you can carry with you in case you need to use Internet Restore or make use of the other utilities Recovery provides.