As mikewhatever said in a comment, it technically doesn't matter at all. Just give it some free space, somewhere, and it can install there and run.
In practice though, you might have other reasons to set it up one way or another, and it can be confusing at first to figure out what the installer calls each drive or partition. Thus, when I set up my laptop to dual-boot (or re-install the same or a different system), I pull the quick-remove storage-only drive so that I don't accidentally end up depending on that to boot to any system, which is entirely possible if you get things mixed up.
Also, the DOS/Windows drive letters do not correspond to physical drives. They are partitions, which may or may not be on the same physical drive or different drives. For example, a pre-built, ready-to-go PC might have exactly one physical hard drive that is partitioned into a C:/ drive for normal use and a D:/ drive for "recovery". The screenshot in the question above shows this, except that the "recovery" partition in this case doesn't have a drive letter. That probably means it's formatted with something that Windows can't read (but the OEM recovery tool can), possibly to prevent a user from messing it up like you could with earlier versions of that idea.
Anyway, since there's really just the one physical drive in the entire system, how is the "recovery drive" supposed to handle a hard drive crash??? Seems kinda useless to me, unless you screw up your settings I guess, or install some crapware, and the drive itself is fine. And Windows 10 has its own recovery tools that don't use a separate partition anyway. (I've used them to reset a PC that I set up for a specific application, and then went a different direction.)
So I'd be tempted to just blow away the recovery partition and use that space for something else. Either absorb it into a neighboring partition (grow the neighbor into it), or put Ubuntu (or whatever) there if it fits comfortably.
