A tiny itchy spot on my scalp drives me nuts, hair is missing from it, I keep picking off the itchy scaly skin but it comes back, what could it be?

Fungus or- The first thing i would have a doctor check for is a skin fungus by looking through a woods lamp or taking some scrapings. It could be psoriasis, eczema or actinic keratosis with the loss of hair being related to you picking at it. It would need to be seen.