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Heat the oven to 350 degrees and grease a 9-by-13-inch ceramic or metal baking dish with butter. Set the hash browns out at room temperature to thaw slightly, breaking up any clumps.
Heat 1 tablespoon of olive oil in a large skillet over medium. Add the sausage and cook, breaking up the meat with a spoon, until browned and starting to crisp, 5 to 8 minutes. Using a slotted spoon, transfer the sausage to a paper towel-lined plate.
In a large bowl, whisk the eggs, milk, salt, Italian seasoning and pepper.
Place the hash browns in the prepared baking dish, along with the cooked sausage and the cheese. Toss until combined, then spread into an even layer. Pour in the egg mixture, making sure the hash browns are submerged.
Bake, uncovered, until the eggs are set and the casserole is lightly browned at the edges, 45 to 50 minutes. Cool for 10 minutes, then top with scallions, if using. Cut into squares and serve.