Virtual Hard Disk (VHD) is a file that can be mounted in the system and work as a logical disk, all its data can be encrypted. Operating system Windows 10 provides tools to create and manage VHD. The VHD file can be copied to another system, USB flash drive or to a cloud (Google Drive, Onedrive, etc.). Let's see how it works.
First, start the Disk Management program - open the Run dialog box (hit WIN+R on the keyboard), then type diskmgmt.msc in it.
click on Action --> Create VHD In the system menu of Disk Management:
You'll see this panel - Create and Attach Virtual Hard Disk:
Select the location (1) for the Virtual Hard Disk, in this example it is located in "C:\disk.vhdx". The format of the disk is VHDX (2), it is more reliable than VHD. The disk is Dynamically Expanded (3), it means that the disk size will expand until it reaches the limit (4).
Warning! Virtual Hard Disk can only be created and used on NTFS partitions. If you try to create it on FAT32 partition, you'll get this message:
The requested operation could not be completed due to a file system limitation
FAT32 and other type of partitions can be use only to store VHDX files.
Now exit the Disk Management, then start it again. You'll see a panel that allows to create a Master Boot Record for the Virtual Hard Disk:
Next, click with Right Mouse Button on Unallocated Space and select New simple Volume form the context menu:
You'll see New simple Volume Wizard, follow its instructions:
Assign any available letter to the Virtual Hard Disk:
At the end, the disk can be seen in the Disk Management:
Open File Explorer (hit WIN+E on the keyboard), you'll see the Virtual Hard Disk is mounted as a logical disk:
To disconnect the Virtual Hard Disk from the system, click with Right Mouse Button on the disk, then select the command "Eject" form the context menu:
To mount Virtual Hard Disk, click with Right Mouse Button on the VHDX file (in this example it is "C:\disk.vhdx"):
Mount the disk as it was described above. Click with Right Mouse Button on the disk, select Turn On BitLocker
Enter a password. Use a strong password that contains lowercase and uppercase letters, digits, symbols and spaces:
Save the BitLocker Recovery Key to a file:
Now the disk is encrypted. If you mount it and click on the disk, you'll be asked for password.
If you forgot the password, then you can use BitLocker Recovery Key to unlock the VHDX file so keep the recovery key safe (the signature Recovery Key in the file saved earlier):
Recovery Key: 223656-437586-548768-293192-023794-173624-216755-193048
Click on More Options --> Enter Recovery Key:
Then enter the Recovery Key:
And now you can open the Virtual Hard Disk and work with it as with a normal disk, all the data are encrypted. Dismount the disk, and you can move the it (the file "C:\disk.vhdx") to any other computer with Windows 10.
Copy file "disk.vhdx" to a new system, then try to mount it. You'll see this error:
Open Control Panel (WIN+R on the keyboard, then type control.exe) System and Security --> BitLocker Drive Encryption and unlock the file (find a corresponding logical drive in the BitLocker Drive Encryption panel ):
Click on "Unlock Drive", then enter the password. That's all, the Virtual Hard Disk is ready. Now it can be used as a normal logical disk.
You can also watch this Youtube video: How to create encrypted virtual hard disk in windows 10