According to Healthline, the most common condition that results in an itchy ankle is athlete's foot. Known medically as "tinea pedis" (via Mayo Clinic), it's a fungal infection usually found on your toes but can present itself anywhere on the foot, including the ankle. Athlete's foot is caused by a fungus called dermatophytes, which also causes ringworm and jock itch. A sweaty environment like a shoe or sock can encourage the fungi to grow, particularly if it's a tight fit. Once the irritation begins, athlete's foot soon produces a contagious "scaly rash." However, it can also take on the form of blisters or a patch of inflamed skin that looks "reddish, purplish, or grayish, depending on your skin color," according to Mayo Clinic.
As the fungi infection is contagious, you can also get it from places those infected with it have been, like the gym or a local swimming pool, or even from towels. Thankfully, the infection can be treated with antifungal medication that you can get either over-the-counter or via a prescription from your doctor.