Preheat oven to 400F. In a 12-inch oven-proof skillet over medium heat, warm your olive oil. Add red pepper flakes, garlic and shallot and saute for 2-3 minutes.
Add sausage slices and cook through and brown, about 5 minutes.
Add tomatoes, salt, pepper, oregano and 1/2 cup water. Roughly break up the tomatoes with a spoon. Simmer on low for about 10 minutes until the the sauce thickens a bit. Remove from heat.
Add spinach, dollops of ricotta and gnocchi. Stir. Top with grated parmesan and mozzarella slices.
Bake for 15 minutes uncovered until bubbling. Serve with fresh basil if desired.