Not the drive doesn't need to be mounted with a drive letter in order to search it.
The default behavior is to do a quick scan of the MFT to look for deleted files.
From the Config window (there is a "Config" button in the deleted file search window) you can pick other options. These options include,
- A check box to do file carving. This will only carve in unallocated space in the case of NTFS. This makes it faster than doing the whole drive.
- Verification that image files (JPG, PNG, etc..) are valid files before including them in the list of files found. This can reduce false positives.
Needless to say scanning the whole disk for carving is much slower than just using the MFT option.