Yes it has to be unlocked unless it's locked to koodo. If it's locked to telus, try popping in a koodo sim as it could be a hit or miss if it works or not. But generally it will need to be unlocked. You can get unlock codes online just make sure they are from reputable sites/sellers. Or if you're not a koodo customer already, koodo can unlock it for you for $35. :)
Yes, the phone will need to be unlocked, luckily Koodo kiosks can unlock non-Koodo phones (except iPhones, but that's irrelevant to you) and they're offering a one-time-per-customer free unlock of a non-Koodo phone for a limited time.
You can also ask to transfer an existing number to Koodo at the time of activation, just make sure the number is still active with your current provider. They'll also require either the account number, PIN or IMEI on your old account, but since you're unlocking you will have the IMEI.