Recursion is useful for permutation, because it generates all combinations and tree-based questions. You should know how to generate all permutations of a sequence as well as how to handle duplicates.
Remember to always define a base case so that your recursion will end.
Recursion implicitly uses a stack. Hence all recursive approaches can be rewritten iteratively using a stack. Beware of cases where the recursion level goes too deep and causes a stack overflow (the default limit in Python is 1000). You may get bonus points for pointing this out to the interviewer. Recursion will never be O(1) space complexity because a stack is involved, unless there is tail-call optimization (TCO). Find out if your chosen language supports TCO.