One of my favorite new features in Lion is a completely revamped “FileVault”, Apple’s brand-name for encryption techonologies that protect the data on your disk from eavesdroppers, should the disk be lost or stolen.

In Mac OS X 10.6 and earlier, FileVault was a feature that only affected your home directory. In OS X Lion, it applies encryption at a very low-level, encrypting an entire volume of your disk at a time, and keeping it encrypted as you use it.
I was able to enable FileVault for my boot volume with relative ease, using the Security & Privacy preference pane in System Preferences. However, the UI for this is pretty limited, and notably, it only allows you to protect the computer’s startup disk.
The way I have my Mac configured, most of my sensitive data is not on the startup volume, but is instead on a second partition called “Data” where I keep my home directory, media files, etc. Apple’s Disk Utility allows you to erase and reformat a volume as encrypted from scratch, but what if you want to migrate a volume in-place, the way the system does the boot volume? You’re not completely out of luck.
OS X Lion ships with a low-level technology called “core storage,” which is used to facilitate a wide variety of disk-maintenance functionality, including whole-disk encryption. To get a quick look at what core storage supports, type “diskutil cs” at the Terminal command line. For a more in-depth look, type “man diskutil” and search for the core storage command documentation.
Important: This is the part of the blog article where I warn you to be very careful before proceeding. The diskutil command is capable of doing incredibly destructive things to your disk and to your data, so you should feel confident before doing anything that you have a 100% reliable backup of your data.
To convert an arbitrary volume to Lion’s whole-disk encryption, you use diskutil’s core storage “convert” command, and provide a passphrase. For example, if you have a volume called “Data” attached to your Mac, you would run something like this from the command line:
% diskutil cs convert /Volumes/Data -passphrase '[yourPasswordHere]'
Warning: at least one person has run into an issue where the passphrase was set to something unexpected because of characters such as ! and $ being interpreted by the shell before being passed to the tool. One more good reason to make sure you have a backup before messing with any of this stuff.
The “diskutil cs convert” command kicks off a conversion process similar to what the System Preferences panel does when allowing you to convert your main startup volume to core storage with encryption. At any time during the conversion, you can use the diskutil command again to see status of your volumes, whether they are encrypted, not encrypted, or in-progress while converting.
% diskutil cs list
You’ll see a bunch of information, but search carefully for the named volume (e.g. “Data”) that you just started the conversion process on. You’ll find a line starting with something like:
Size (Converted):
This shows you what the progress in the conversion is. From time to time, check this manually, to see how far along things have progressed.
Caveats
In addition to the major admonition above to backup your data carefully, you should also know that after you have converted a volume, it seems to be in a sort of provisionally encrypted state where it’s still being treated by the running OS as a “native volume” although it’s been converted and is ready to be treated as a “core storage” volume. I have to confess I don’t really understand it 100%, but it seemed like a really good idea to me to restart as soon as possible after the conversion is complete.
But before you restart, bear in mind that there appears to be a bug in the login process that will prevent a user whose home directory is on an encrypted (“locked”) secondary volume from being able to log in. It seems that whatever logic Apple applies to unlock volumes at login time is not applied early enough to allow the actual login to occur. This means that if you converted your secondary volume like I did, and it contains your home directory, you won’t be able to login.
For this reason, make sure that you have a valid account to log in to whose home directory is located on the main startup volume. In my experience, the process of logging in to this main-volume account will prompt the system to ask for the secondary volume’s password in order to unlock it. Once the secondary volume is unlocked, you can log out and log back in to your regular account, with the home directory on the secondary volume.
This bug is pretty annoying. Hopefully this is something that Apple will get fixed soon, and it may be for bugs like this that they haven’t enabled full-disk encryption as a full-fledged user-facing feature of the operating system. In the mean time, if encrypting your data is important to you, I hope these instructions and caveats will serve you well.
Update: Not surprisingly, this topic is covered in some detail in John Siracusa’s Lion review.