A vector space is a two-sorted structure, one sort being vectors and the other sort being scalars. Scalars act linearly on vectors via scalar multiplication, and a scalar multiplication is nothing more than a scaling operation, so it is no surprise why "scalar" has that name. Of course, scaling operations are (meant to be) linear operators on vectors, and for finite-dimensional vector spaces, linear operators on vectors are isomorphic to matrices (with operator composition corresponding to matrix multiplication).
Specifically, given any finite-dimensional vector space $V$:
$c \cdot v = \pmatrix{ c & 0 & \cdots & 0 \\ 0 & c & \cdots & 0 \\ \vdots & \vdots & \ddots & \vdots \\ 0 & 0 & \cdots & c } \pmatrix{ x \\ y \\ \vdots \\ z }$ for any scalar $c$ and vector $v$ in $V$, where $\pmatrix{ x \\ y \\ \vdots \\ z }$ represents $v$.
Note that the above is valid regardless of which basis we use for $V$. If you choose a different basis then $v$ will have a different representation, but the result after the matrix multiplication will be the representation of the same scaled $v$, namely $c \cdot v$ here.
So it is not correct to think of a scalar as a $1 \times 1$ matrix, even though it is true that the field of scalars alone by itself is isomorphic to the field of $1 \times 1$ matrices. That is just a natural coincidence, but whenever we think of scalars it is with respect to a larger vector space structure, in which case scalars are not at all $1 \times 1$ matrices. For an $n$-dimensional vector space, scalars correspond to a certain kind of $n \times n$ matrices as shown above.
Note that the correspondence is not at all equality. That is why the same collection of scalars can be used in many different vector spaces with different (or even non-existent) dimension. It is only with respect to each vector space structure that scalars are isomorphic to a particular collection of matrices.
Since not all vector spaces have matrix representations, scalars are in general just (isomorphic to) a special collection of linear maps that are also a field under pointwise addition and composition.
Exactly the same thing applies to scalar multiplication of matrices, which is nothing more than composition of a scaling operation after the linear map represented by the matrix.
Specifically, given any finite-dimensional vector space $V$:
$c M = \pmatrix{ c & 0 & \cdots & 0 \\ 0 & c & \cdots & 0 \\ \vdots & \vdots & \ddots & \vdots \\ 0 & 0 & \cdots & c } M$ for any scalar $c$ in $V$ and matrix $M$ over a basis of $V$.