To complement the answer from @raz, one must be aware of Protocol Downgrade Attacks. Browsers like IE send their maximum supported version, and then the server chooses (in your case, IE says "I know up to TLS 1.2" and the server responds with "we will do TLS 1.0"). However, browsers know that there exist buggy servers out there, that will simply have an epileptic stroke when the client says "I know up to TLS 1.2". If the connection just breaks, the browser will try again, saying "I know up to TLS 1.1". On failure, it then tries again with "I know up to TLS 1.0". Again on failure, the client will again try, claiming only SSL 3.0 support.
The problem with this behaviour is that an attacker can simply kill connection attempts that try to do anything else than SSL 3.0. From the point of view of the client, this will look like a buggy server that cannot tolerate anything else than SSL 3.0. From the point of view of the server, this will look like an old client that knows only SSL 3.0. The net result is that client and server will use SSL 3.0, even though both support TLS 1.0.
Summary: though, nominally, in SSL/TLS the client proposes and the server chooses, the try-again-with-lower-version behaviour of most browsers implies that, in practice, the client proposes but the attacker chooses. Which is unfortunate.
This is why you should disable SSL 3.0 support in your browser.