It uses the normal trash bin of your system. So you can grab it our of there.
In Windows you find it in the explorer, in Linux it is as well in Konquerer / Nemo / ...
If you just deleted the file, know that VSCode 1.52 (Dec. 2020) will support:
Undo file operations in Explorer
Explorer now supports Undo and Redo for all file operations: delete, rename, copy, move, new file and new folder.
Make sure the focus is in the Explorer and trigger the Undo or Redo commands and your last file operation will be undone or redone respectively.
Keep in mind that we have separate undo stacks for the editor and the explorer and we choose which one to undo based on focus.
I know the OP says Recycle Bin. What I do though is recreate the file, especially if it's a single file. And when in the file, I just press CMD+Z (I'm on a Mac) and I get my file back.
I accidentally discarded changes in the Source Control in VS Code, I just needed to reopen this file and press Ctrl-Z few times, glad that VS Code saves your changes like that.
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