There is plenty of space on the disk. You are getting this error for a different reason. If your machine is anything but a desktop then you would get the error you have.

https://technet.microsoft.com/library/354e5163-f388-4354-984c-ea4e4206694c

You aren’t able to delete the recovery partition because it EFI protected. You should be able to force by using the override command.

https://technet.microsoft.com/en-us/library/cc766465(v=ws.10).aspx

I would try using diskpart (from an elevated command prompt) to delete the partition and convert to dynamic disk.

DISKPART> list disk
DISKPART> select disk 4

Disk 4 is now the selected disk.

DISKPART> list partition

Partition ### Type Size Offset
————- —————- ——- ——-
Partition 1 Primary 223 GB 1024 KB
Partition 3 Recovery 450 MB 223 GB

DISKPART> select partition 3

Partition 3 is now the selected partition.

DISKPART> delete partition override

DiskPart successfully deleted the selected partition.

DISKPART> list partition

Partition ### Type Size Offset
————- —————- ——- ——-
Partition 1 Primary 223 GB 1024 KB