C: and D: are the designations that are used by the Windows operating system. As you noticed, volumes in Ubuntu are designated in the format sda, sdb etc. Partitions on these drives will be in the format sda1, sda2 an so on...
There must be free space for the Ubuntu installer to use. If you boot into the USB containing Ubuntu, you can choose the option "Try Ubuntu". The live system will include a program called "Disks" (gnome-disk-utility). The Disks application can be used to delete partitions and to format entire volumes.
Before any making changes, be absolutely sure that you are working with the correct drive, since formatting a drive or deleting a partition will effectively remove all of the data. For good measure, when installing operating systems, you should always make sure you have made adequate backups in case you make a wrong move and delete everything.
Please see: How do I install Ubuntu alongside a pre-installed Windows with UEFI? for info on the installation process itself.