Odd red oval-ish bump (1in diameter) just above knuckle on big toe. maybe more pink depending on lighting. doesnt hurt. its soft. almost feels like a callus but no idea how that area would have friction. does it sound serious?

could be a cyst, possibly a mucus cyst, which are benign. Suggest you see a dermatologist for confirmation and possible tx.

It is very common for the top of a toe to rub against a shoe. Podiatrist would be able to determine if the shoe is part of the problem or not. If you do you have a cyst that was suggested shoe could be causing it. That area of the shoe is called the toebox. A podiatrist can help you pick issue with it deeper and higher toebox that will prevent irritation to the digit