Both Uses of

recede
in
Cujo

Now his green felt hat was tipped back on his head to show his receding hairline.†
*

receding = moving away or diminishing (become less)

Halfway across the dooryard he looked over his shoulder and saw that the house had receded to nothing but a misty outline.†

receded = move away or diminished (became less)

Definition:

to move away or diminish (become less)

The exact meaning of recede depends upon its context. For example:

"We can't move back in until the floodwaters recede." -- diminish and move away
"Her fear receded." -- diminished
"The waves first advance and then recede." -- move away
"The news story receded into the background as it was replaced by new stories." -- received diminished attention
"a receding hairline" -- diminished hair (each year the line where hair stops growing is higher on the forehead)
"She has a receding chin." -- sloping back (as contrasted to sticking out)