This is way out of date, but the other answers don't really address the question. The entropy is a measure of how well the selection process creates a random value. The entropy is defined as the value S such that the best guessing attack will require, on average, S/2 guesses. There's lots on this elsewhere on SE (here, for example).
Entropy is normally measured in bits. If S is 256, for example, the entropy is 8 bits, and the best attack should require, on average, 128 guesses. On modern Linux kernels (5.10+) entropy_avail will normally return 256 (bits), which tells you that you can get a 256-bit random number from /dev/[u]random, and that it will probably take, on average, 2255 guesses to crack it.
Whether or not the kernel-reported value of 256 is actually a correct measure of entropy, though, rather than just the number of available bits, is another matter. Jason Donenfeld (the author/maintainer of the code) says that "entropy estimation is fundamentally impossible".
How low is "too low"? Well, if you want a 256-bit random number, and your generator has an entropy < 256 bits, it's too low. OTOH, you could just combine multiple "too-low" results, if you're confident that your generator has been correctly implemented and the entropy value is correct. Note that /dev/random no longer blocks in recent kernels (5.6+) so you can't just wait till you get the required number of bits.