How long has the hair loss been happening? Since you were on the levo, or more recently? There could be a chance there's something in the filler part of the levo your body doesn't like, but usually hair loss is because you're not getting enough levo, or even too much. (I had my hair fall out with Graves' Disease, before I was treated for it.) Some people do better on different brands of levo due to illers in what they currently take don't agree with them, either-it might be time to ask for something different.
The bumps/welts/itchiness could be from the hair loss itself. All I can describe it as is think of shaving something you're not used to, then as it tries to grow back in, how much it itches. Dry skin can be a problem of thyroid imbalance as well, which might be why it's so itchy, too.
Have you had any vitamin tests done? Iron/ferritin, Vitamin D, B12, etc.? Since you also had a hysterectomy, have you had hormone levels checked? Deficiencies in these sort of things can also cause hair loss.
Levothyroxine is exactly the same as what your body would produce if it could, so it's highly unlikely that's causing your hair loss.
Most likely, it's because you're under medicated, even if your labs are normal. Just because you fall into range on the lab report, doesn't mean those values are right for you.
If you'll post your actual results, we can better assess your testing/treatment. Be sure to include reference ranges, which vary lab to lab and have to come from your own report.