According to the screenshot you provided, you have a 14.75GB partition called the OEM Partition. This should be the partition that can restore you computer to factory specs. According to the Lenovo user manual for the Z570, you should have something called the OneKey Rescue system installed on your computer. See Chapter 4 for more information. (NOTE: You can test the OneKey Rescue system first by seeing if you get a screen that let's you choose between restoring your system partition to the original factory status, or to a previously generated backup.) Z570 User Guide
I'm not sure about the control panel > Windows 7 file recovery icon. It may be your personal files that were on the computer when 7 was installed or it may be something else. You could always open the applet and see what it contains. If you have any other files, apps, programs, etc on the computer that are important to you, definitely back them up before you attempt a factory restore because everything will be erased.
Just as another possible solution, you could always download an official Microsoft ISO file for the original version of Windows 7 that came with your computer. Save it to your desktop and then burn it to a blank DVD. That gives you the install media to do a clean install. Official Windows 7 SP1 ISO from Digital River « My Digital Life Clean Reinstall - Factory OEM Windows 7 Clean Install Windows 7