would i be able to choose any 0 lvl and 1rst lvl spell or would i need them to be on my list and if not could i take an arcane spell would that be considered prepare 1st lvl spell for dragon disicple ?
The trait doesn't grant you the ability to cast the spells, it merely makes them function as if your caster level were 1 level higher. Therefore it doesn't qualify you for Dragon Disciple.
You could choose spells not on your list, but that would be rather pointless as you would never be able to cast them unless you found some way to add them to your list.