Not sure about you, I had been wondering about this question since day 1 after I created LP and added it to liquidity. I tried to google it to see if anyone was talking about it but had no luck.
I created an ETH/USDC LP when the price of ETH was hitting record high. Not very familiar with the rules and how it works with the new version of Uni, I set the price range which was way too low compared to ETH price at that time, leading to an "out of range" LP and idle asset. I held onto this LP as I worried that I may lose the NFT if I remove the LP from liquidity.
Well, you will never know how Mr. Market will react. When everyone thought the price could only keep on going up, the market made a sharp turn. The downturn did me a favor though, my LP started to be in the range and made me some money... I made over 10% in a month. But with the price keeps on going down, it slips out of my range and again, the LP was idle again.
After letting the LP idle for more than one month, I decided to do something. I removed it from the liquidity, and added a new one which is closer to current market price. By doing this, I am hoping the new LP can generate some passive income for me like first one did. And to my pleasure, I found out even though the first LP now shows inactivity in Uniswap interface, I still have the NFT in my wallet which I can modify or redeem.
When facing uncertainty in life, we tend to be hesitant and not sure what we should do out of fear of failure or being hurt. But you will never know and grow if you don't try. I let the LP sitting on the account doing nothing for more than one month because I was afraid that I may lose the NFT. The result was idle asset and an unanswered question. With the action that I took now, I get to keep the old NFT, and gain another one with the new LP added, and the best of all, the new LP can keep on making money for me in current market situation. I am no longer wondering what will happen if I remove the LP, or no happy that the LP's idle. Curiosity and taking action is always our friend.