Where I can, I use 1.2mm for legibility without magnification, but will go smaller/larger depending on layout constraints. Anything less than 1.2mm and I print out a zoomed copy to use as a reference on the bench so making the effort to put the designators in sensible positions is rewarded in the print out even if the silk screen is nearly illegible.
If you are trying to choose a house style for your own work, consider what pitch you will be laying your 0805s out and choose something which works. Say 1.8mm between centres would suggest something of the order of 1.4mm could work for you.
Obviously user instructions and pinouts as large as you can make them within reason.
Not sure how useful this image is now, but I've taken it already and
will upload it

. These markings are 0.7mm/0.15mm pcb manufactured by Elecrow low-cost service who's rules are 0.8mm/0.15mm so it's not a surprise the eye of 'R' is filled. Shaky camera doesn't show it at its best but for size reference: U5=SOT23-6; C13, C15=0805; R32=0603 all with 0.7mm characters.