To help limit a performance penalty when using recursion, SQL Server has a limit of 32 levels of recursion for Stored Procedures, Views, and Triggers. Microsoft says:
Stored procedures are nested when one stored procedure calls another or executes managed code by referencing a CLR routine, type, or aggregate. You can nest stored procedures and managed code references up to 32 levels. The nesting level increases by one when the called stored procedure or managed code reference begins execution and decreases by one when the called stored procedure or managed code reference completes execution. Attempting to exceed the maximum of 32 levels of nesting causes the whole calling chain to fail. The current nesting level for the stored procedures in execution is stored in the @@NESTLEVEL function.
Although the nesting limit is 32 levels, SQL Server has no limit on the number of stored procedures that can be invoked from a given stored procedure, provided that the subordinate stored procedures do not invoke other subordinate stored procedures and the maximum nesting level is never exceeded.