If that port is opened on the WAN side (Internet), that can indeed represent a security risk. Telnet is used in order to connect remotely to a device and manage or control it. It's generally protected by a username and/or password. I don't know what router this is, so by staying general, this port would preferably be disabled. Managing a router from the internet by using a non secured protocol (Telnet is not secured) is like screaming the router's password and its configuration to your neighbours, knowing that the right person also heard it.
Point is not to be scary, knowing for example which router we're talking about might help understanding the scenario.
On Windows machines, by default, the port 23 isn't used, thus would be irrelevant to block (except to complicate the troubleshooting once it might be needed).