Butter can most definitely burn if you keep it in the oven too long, just like anything else. The best thing you can do in order to keep butter from burning is to make sure that you carefully monitor how long it is in the oven and check on it periodically. By taking the time to do this you will be able to avoid any problems with burning.
When butter burns in the oven on a cooking sheet or some other flat surface, it can be very difficult to get off. Make sure that you set a timer and check on whatever you have in the oven every so often, just so you can make sure it does not burn.