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So, they generally don't repair easily once being damaged. However, in any case, endoneurium should be present for a nerve fibre to repair. In damage of nerve fibre during surgery if the nerve is cut, it means the endoneurium is also cut(damaged) at that site. So, usually that nerve can not repair on its own.
Answer: Yes, serious nerve damage can occur with sciatica. The pain from sciatica is the result of very real damage to your sciatic nerve. Usually, this damage is only minor and will heal once the pinched nerve is relieved. In all probability it will not result in permanent nerve damage, but the possibility does exist.