As it says in the help file for scan1(), "max_batch indicates the maximum number of phenotypes
to run together; default is unlimited."
If you are using a kinship matrix and so a linear mixed model, the phenotypes will be considered one at a time. But if you are not using a kinship matrix, the phenotypes are considered as a batch when fitting the model. There has been some experience that working with no more than, say, 500 at a time can actually be faster than working with them all at once, but this may depend on the computer hardware and the particular data, so the parameter is there if you want to use it.
With 1 million phenotypes, I think the bigger problem you'll have is just storing and working with the results. If the genotype data are n x m and the phenotypes are n x k, the output of scan1 will be m x k, which may be much, much bigger than the data themselves. You may need to break the phenotypes into batches manually.
karl