+1 on frassm737's evaluation, and especially for pointing out "inexact."
This is the battery capacity, or "health," history of my iPhone SE 2020 from new in November 2021, as tracked by the Coconut Battery app:

Note:
- my battery started life at 102%. Go figure.
- the capacity reading is non-linear. Its trend is linear (normal) but spot values jump around.
This battery gives more than acceptable runtime today after nearly three years of daily use. I have a couple of devices whose battery are well under 80% and still give adequate runtime for the limited needs those devcies have to serve.
80% is a useful target value but not engraved in stone. Replacing at 80% is good future-proofing but I've found with my devices that as long as the battery does not show signs of catastrophic failure (bulging, runtimes plummeting to minutes, etc) you can keep using a battery as long as it meets your runtime needs.
The 80% number seems to have come from guidelines Apple techs used evaluate batteries for WARRANTY service. That guideline for years was that, if the battery in a device UNDER APPLE WARRANTY fell under 80% capacity (health) at less than 1000 cycles, Apple MAY elect to replace the battery at no cost to the owner.