if you're just having fun, it doesn't really matter.
if you're trying to be practical, then use targets slightly smaller than what you would actually be shooting at in whatever practical scenario you envision, so you understand your capabilities. Note that in practical scenarios, targets don't get magically larger as they get farther away... so it's really more about knowing how far away your limits are
but for matches, inside 1000 yards, the 1.5 MOA for prone targets and 2.5 MOA for positional is a good guideline, so go smaller if you are practicing, larger if you're having fun
Beyond that range, here's an example of the targets past 1200 yards in the ELR PRS match in Wyoming last year:
(how many attempted shots, distance in yards, size in inches and shape)
3x 1266 30" circle
3x 1749 40" circle
2x 1220 antelope
4x 1215 24" circle
3x 1396 50% elk
3x 1278 50% elk
3x 1420 24" circle
3x 1710 30" circle
3x 1224 wolf
4x 1529 elk
3x 1442 24" circle
2x 1200 24" shot strong side, 40" shot weak side
3x 1283 antelope
3x 1770 wolf
1x 1217 20" circle
1x 1516 30" circle
As you can see, most of those are a hair under 2 MOA. Some of the animal shapes e.g. wolf, are more forgiving on wind and a lot less forgiving on elevation
there's no set standard to compare yourself to, but that should give you some idea of what others are shooting at. also consider the NRA F class scoring rings. 5" at 1000 for the x, and 10" for the 10 ring. but you get sighters and shoot the same target 15-20 times in a row. it's a lot harder when you have UKD, changing directions and positions etc