I see you have 158 views and no replies, so I'll try.
I haven't used Time Machine in over a decade, I use CCC, but 'data' and 'recovery' are well known definitions on mac. Recovery is an invisible part of a macOS installation that lets you start up in 'recovery mode' to fix things or reinstall the system. 'Data' is the part of the macOS installation (typically called 'Macintosh HD') that contains all your user data.
Therefore, assuming that this is the correct TM backup drive that Migration Assistant is pointing to, I think it's very safe to say that to restore that to the main drive, the 'data' is what you want.
Not sure why you are seeing 'recovery' at all, but as I say, I'm not a TM user.