When first contact was made and they found that the westerners making themselves at home in East Africa were from Italy, would they have known what/where that is? Would they be referred to as Italians by Ethiopia or some other term like Latins or Catholics or Romans? What did Ethiopia think Europe looked like then?
Ethiopia wasn't isolated as you think. The Ethiopian monarchy had been sending missions to Europe far before the Italians turned up in Eastern Africa in the 19th century. The first of such missions was in 1306, a second and third in 1402 and 1404 were directed at Venice to acquire religious artifacts, artisans and other skilled craftsmen; in addition, Ethiopian monarchs often sought European assistance against Muslim enemies; while extensive cooperation between the two was often hampered by Muslim Egypt, there were moments where such a collaboration proved useful such as in 1541 when the Portuguese collaborated with Ethiopians to defeat a powerful offensive by the Muslim Adal Sultanate. The relationship between Europe and Ethiopia would continue with the Emperors of Ethiopia importing foreign craftsmen and technology to bolster their power and this continued even till the time of Italian imperialism. For instance, Emperor Menelik's army that won at Adowa against the Italians was equipped with guns from France and Russia.
Rome was also an important pilgrimage destination of Ethiopian monks as well and several Ethiopians were present at religious councils such as those held in Constance (1417) and Florence (1441).
Sources:
Salvatore, Matteo. The Ethiopian Age of Exploration: Prester John's Discovery of Europe, 1306-1458. Journal of World History. 593-627