This will be a two part process.
First Part
Create the parameter as a String Type and have the List of Values Static. Choose the field {table.recordid} as the Value Field and add a description if you please. Make sure Allow Custom Values is set to True.
Second Part
Go to Report -> Selection Formulas -> Record. and add the following code:
({?NewParameter}="ALL"
and
{table.recordid}={table.recordid})
or
({table.recordid}={?NewParameter})
Where {?NewParameter} is the name of the parameter field you created.