I have diabetes, when I lay down to goto sleep my feet itch awful is this related? Is it something to be concerned about?

May or may not. Be related. For example it is possible you have fungus, or it could be neuropathy. Visit a food doc and have it looked at. Diabetic is at a higher risk when an infection is present and athletes foot does increase he risk of foot infection. Of it is neuropathy, that is a progressive disease (if small nerve fiber disease) process and you would want to try and reverse it.
Many possible causes. There are many things that could cause the skin to itch. Several types of inflammatory conditions of the skin, allergic reactions, and sometimes bacterial, viral or fungal infections can cause rashes on the skin. Insect bites can also be the cause of a rash on the skin. Have it evaluated by a professional and get the appropriate treatment.