What does it mean when ϵ=0 and ϵ=1? If ϵ=1, does it mean that the agent explores randomly? If this intuition is right, then it will not learn anything - right? On the other hand, if I set ϵ=0, does this imply that the agent doesn't explore?
You are correct, when ϵ=1 the agent acts randomly. When ϵ=0, the agent always takes the current greedy actions. Both of these scenarios are not ideal. Always acting greedily will prevent the agent from exploring possibly better parts of the state space, and instead the agent may get stuck in a local optimum. And always exploring randomly is obviously not ideal as well. Thus, we need to balance between these two. This is often called the balance between exploration and exploitation.
For a typical problem, what is the recommended value for this parameter?
ϵ is a hyper parameter. It is impossible to know in advance what the ideal value is, and it is highly dependent on the problem at hand. There is no general answer to this question.
That being said, the most common values that I have seen typically range between 0.01 and 0.1. But I want to stress, there is no ideal value that works for all problems. A typical strategy is to try several values and see which one works best. For more information, you might want to look up hyper parameter tuning.
Another common practice is slowly decaying epsilon over time (often this is called "annealing" or "simulated annealing"). Depending on the algorithm, decaying epsilon to zero may be a requirement for convergence. In some contexts, an algorithm that decays epsilon over time is called a GLIE algorithm. For example, see this.