A rash that itches and oozes, even bleeds - can be mange; however, it can also be a number of other skin conditions.
Many years ago 'mange' was among the worst things a dog owner might hear. There were home remedies back then that tormented the dog, often made things worse and didn't work.
Some types of mange will naturally run its course on its own in several weeks. It was probably these types of mange that owners thought they ‘cured' with those home remedies.
These days, people are far more informed and know that mange comes in two general forms: Burrowing and non-burrowing.
Yes, people can get mange (it's called ‘scabies' in humans), so getting the dog treated right away is a good idea all around.
Mange might be mistaken for ringworm (not a worm, but a fungus) in some cases. The treatment for ringworm (an anti-fungal cream usually applied twice a day) will not cure mange.
The reason a vet really needs to see a dog with possible mange (other than it could spread to other animals and throughout the family?) is because a skin scraping/biopsy is necessary to determine the type. Treatment for one doesn't necessarily eradicate the other(s).
Find out about Demodectic mange here: http://www.marvistavet.com/html/body_demodectic_mange.html
For more about mange, symptoms and treatments, see http://www.canismajor.com/dog/mange1.html
Sarcoptic mange is zoonotic, so be careful, you can catch it
When it comes to an allergy to grass, that's unlikely; however, an allergy to something ON the grass is possible. Perhaps a fertilizer or pesticide.
In any case, it's by far the best and safest thing to have a vet see this first hand and know for sure.
Good luck!
Many have forgotten this truth, but you must not forget it.
You remain responsible, forever, for what you have tamed.