The Azzurri stunned France 23-18 in last weekend's opener in Rome. Coach Jacques Brunel has kept faith with his team and Sgarbi only misses out because of an ankle problem.
Gonzalo Garcia takes Canale's place on the bench at Edinburgh's Murrayfield with the latter recovering from a thigh knock to start the game.
Italy, who beat Scotland last year to leave their rivals finishing bottom of the table, will hand a 100th cap to 36-year-old prop Andrea Lo Cicero and a 50th appearance to hooker Leonardo Ghiraldini.
Scotland announced their team on Tuesday but on Thursday decided that Pat MacArthur, the uncapped 25-year-old hooker, would take a place on the bench.
Scottish Rugby also said that flanker Alasdair Strokosch would be out for four weeks after suffering an eye socket fracture in last Saturday's opening 38-18 defeat by England.
Italy team: 15-Andrea Masi, 14-Giovanbattista Venditti, 13-Tommaso Benvenuti, 12-Gonzalo Canale, 11-Luke McLean, 10-Luciano Orquera, 9-Tobias Botes, 8-Sergio Parisse (captain), 7-Simone Favaro, 6-Alessandro Zanni, 5-Francesco Minto, 4-Quintin Geldenhuys, 3-Martin Castrogiovanni, 2-Leonardo Ghiraldini, 1-Andrea Lo Cicero
Replacements: 16-Davide Giazzon, 17-Alberto De Marchi, 18-Lorenzo Cittadini, 19-Antonio Pavanello, 20-Paul Derbyshire, 21-Edoardo Gori, 22-Kristopher Burton, 23-Gonzalo Garcia.
- Sports & Recreation
- Andrea Lo Cicero