Heat olive oil in a saucepan over medium heat. Add onion and garlic, cook 2-3 minutes until softened.
Stir in crushed tomatoes, oregano, basil, bay leaf, salt, and pepper. Reduce heat and simmer gently.
In a large bowl, combine ground turkey, panko, egg, Parmesan, parsley, garlic, salt, pepper, Italian seasoning, and red pepper flakes. Mix with damp hands until just combined.
Shape into 16-18 meatballs and place on a parchment-lined baking sheet. Bake at 400°F for 18-20 minutes, until cooked through.
Transfer meatballs to the marinara and let simmer together for a few minutes before serving.