Heat oven to 400°F. In small bowl, stir together oregano, basil, garlic powder, lemon peel and black pepper. Reserve 3/4 teaspoon of mixture; set aside. In large bowl, mix ground beef, bread crumbs, onion, milk, egg, salt and remaining seasoning mix until thoroughly combined. Form into sixteen 2-inch meatballs. Pour soup into ungreased 13x9-inch (3-quart) glass baking dish; top with meatballs.
Bake 35 minutes or until bubbly.
Meanwhile, in small bowl, mix reserved 3/4 teaspoon seasoning mixture and Parmesan cheese. Unroll each crescent round to make a strip; place strips on piece of foil. Brush strips with olive oil; sprinkle generously with Parmesan cheese mixture.
Remove baking dish from oven. Reduce oven temperature to 350°F. Sprinkle meatballs with Italian cheese. Place seasoned crescent strips in a diagonal pattern on top of cheese, cutting to fit if necessary and not crisscrossing the strips.
Bake an additional 20 to 24 minutes or until cheese is melted and strips are golden brown. Serve in bowls.