If this isn't an heirloom project and you only need shelter, you can also use plain old plywood alone. Exterior grade. Maybe ACX......a clear A face for the exterior, put the C face (the one with blemishes) on the inside. But it will have exterior glue.
T1-11 seems to be made of rough stuff these days........maybe yellow pine. Some complain about it not holding up over the long haul, although 30 years ago, a pant load of houses were sided with it. For reference T1-11 is 5/8" plywood.
What I did was to cut it out and get it ready to fit into place, then before screwing it on, Then before installing for the final time, I painted it, inside and out, plus all the edges. Basically, totally encapsulated it with paint. Two coats of oil based exterior primer, then two coats of exterior latex paint. One year later and it looks the same today as it did the day I painted it. I figure about it will need to be painted about every 5 years or so......exterior only. You could also use an exterior stain, but I"m not a fan of the new water based stains.
The same would be the case for any plywood. If you want to take plain plywood and make it look better, nail on 1 x 2 battens every foot or so including over the seam. Will look like batten board siding.