This work presents a novel Learning Model Predictive Control (LMPC) strategy for autonomous racing at the handling limit that can iteratively explore and learn unknown dynamics in high-speed operational domains. We start from existing LMPC formulations and modify the system dynamics learning method. In particular, our approach uses a nominal, global, nonlinear, physics-based model with a local, linear, data-driven learning of the error dynamics. We conducted experiments in simulation and on 1/10th scale hardware, and deployed the proposed LMPC on a full-scale autonomous race car used in the Indy Autonomous Challenge (IAC) with closed loop experiments at the Putnam Park Road Course in Indiana, USA. The results show that the proposed control policy exhibits improved robustness to parameter tuning and data scarcity. Incremental and safety-aware exploration toward the limit of handling and iterative learning of the vehicle dynamics in high-speed domains is observed both in simulations and experiments.