Recovery creates a new VPC in the same region with same IP range (CIDR Block) as source VPC and recovers the selected resources and its dependencies to the new VPC.
The recovered EC2 instances will have the same private IPs as the source EC2 instances. The Subnets will be created with same IP ranges in the same Availability zones as the source.
You also have an option to change the availability zone under the "Advance options".
Example: If the source VPC is say "Prod-VPC" 10.0.1.0/24 , the new VPC created during recovery in the same region will also have the same CIDR block 10.0.1.0/24 and the EC2 instances will have the same private IPs as the source EC2 instances.