Preheat the oven to 425°F (220°C).
Wash and halve the baby potatoes.
In a large bowl, combine the halved potatoes, olive oil, garlic powder, onion powder, salt, and pepper.
Spread the potato mixture on a baking sheet in a single layer.
Bake for 20 minutes, then remove from the oven and stir in the sliced sausage.
Return the baking sheet to the oven and bake for an additional 15-20 minutes until potatoes are tender and golden.
Drizzle the ranch dressing over the baked mixture and sprinkle with cheddar cheese.
Return to the oven for 5-10 minutes until cheese is melted and bubbly.
Remove from the oven and let cool for a few minutes before serving.