If you are running macOS 10.15+, then "Service Recommended" can mean several things. The easiest way to distinguish the different meanings is by using a third party app such as Coconut Battery (seems to be the most popular app as it has a nice interface) which will tell you how much the Current Full Charge Capacity has dropped from the original Design Capacity. I believe "Service Recommended" will be triggered if the Full Charge Capacity has dropped below 80% of the Design Capacity. Whether this is important for you in particular depends on whether you have noticed the battery not lasting long enough for your particular usage habits. Power users may notice a change near 80% while other users may not notice the short runtime of the battery until the percentage drops closer to 70%-75%.
The only critical meaning to "Service Recommended" is whether macOS has detected a hardware fault with the battery. I'm not sure if Coconut Battery retains the older style macOS battery condition information or if it must use the same watered down "Service Recommended" list. If Coconut Battery shows "Service Battery" , then it means the battery has a hardware fault.
You can also try running the Apple Diagnostics to see if their are any hardware issues detected.
It is truly unfortunate Apple has decided to cripple the battery condition reporting with macOS 10.15+.