When you pump the tire up to pressure does that area feel the same as the rest of the tire?
If you can feel a bump, that means one or more cords are cut and it's time for a replacement. If it's still smooth and the inner tube doesn't stick out, I might continue to ride it.
Since you've found the need to ask, however, that means that you're worried about it. Life is too short to have your serenity disturbed by something that you can replace for a few bucks. Get a new tire and eliminate the worry once and for all.