Can you recover a deleted record in Dynamics CRM 2011?

Unfortunately, the answer is no, unless you restore the database from a backup which is not really practical for a single deleted record.  However, you may be able to recover some data if you have auditing turned on and follow the steps in this Microsoft blog below.

http://blogs.msdn.com/b/crm/archive/2011/05/23/recover-your-deleted-crm-data-and-recreate-them-using-crm-api.aspx

You can also use a free tool to recover data (again if auditing is turned on).   http://www.crmcodex.com/products-page/applications/crm-codex-record-recovery/

If record deletion is a problem:  One solution is to remove “delete” privileges from most users and encourage users to deactivate records.  This way the record can still be reactivated.  If space is an issue, you can create Bulk deletion jobs that delete inactive/deactivated records every X days.