This phrase usually hints at a recommendation rather than being a strong endorsement. You could do worse than check out the local museum while you're in town.
Pro Tip 2/3
Mild Approval
Use this phrase to gently praise something when you don't want to sound overly enthusiastic. For a budget-friendly meal, you could do worse than eat at this diner.
Pro Tip 3/3
Hidden Compliment
Sometimes this phrase can imply that an option is better than one might initially think. She might seem strict, but you could do worse than have Mrs. Thompson as your teacher.