What is the device called that you need to buy when building a new PC that holds the CD's?
I just bought a 1TB c drive but I don't believe that's where you put the CD's, trying to word this question without sounding like a total dummy but I honestly don't know, would it have any significance in gaming performance?
They are typically, generically, referred to as Optical Drives. That encompasses cd drives/burners, dvd drives/burners, and blu ray drives/burners. DVD burners are pretty much the standard, as no one uses plain cd drives anymore.
As far as differences its mainly in supported formats, speeds, and reliability.