You want to get a good enough recording so you can hear the parts at least clearly enough to know what everyone is doing, but you are (probably anyway) not going to release these to the masses (although what a fun B-side or fundraiser perk they would make for the hardcore fans!). The main purpose is for self-evaluation and improvement. The good news is, you’re not going for perfection here (at least with the audio quality!). Hearing clearly is a challenge, to say the least.
If you’re lucky you’ve got some rudimentary sound absorption on the walls, like some old carpet or something, but that’s about it. If you’re anything like I was when I was starting out, your rehearsal space is probably in your drummer’s basement, or in a crumbling old warehouse that’s been sectioned off into dozens of small, loud and dirty rooms.