As the current answers reflect, no, you can't do this directly: you need to implement an ADC that can convert the analog level from the sensor to a digital value that can be read by the digital input pins of the Altera.
However, if turning an LED on if the sensor has a value higher than some threshold is really the only thing you need to do, there's a much easier way: with a comparator. That's a circuit with two inputs A and B, which outputs a high signal when A > B and a low signal otherwise (it's a bit simplified, but that's basically it). You can then connect the output of that comparator circuit to your LED.
If you google "op-amp comparator circuit" you will find some nice circuits that can do what you want.