Sure, teacher has to change the resolution of the recording before starting the recording. Teachers can set the "Max resolution", "Bit rate" and "Frame rate" of the recording. Remember to click "Apply" after making changes.
Please note that the video quality also depends on the resolution of the video camera.
For more information, please visit http://support.panopto.com/coursecast-2-articles/39-windows-recorder/107-recconfig21