Waypoint distance limit

In the first picture, see the blue line (that represents the programmed flight path) that goes way off to the north west? That's bad. That means somewhere else is currently set as the home point within the aircraft.

Then when you hit Yes that you would like to set the Home Point it isn't able to. This is usually due to being indoors where the aircraft cannot get a solid enough fix to set the Home Point itself, like the error in the 3rd picture says. 

If you were to move outside with clear view of the sky and no materials (metal) to cause an error setting the Home Point it would likely be fine. We run into this all the time when testing. Nothing works inside but when it is taken outside to a valid take off location it doesn't have a problem.