High-nitrogen (high-N) austenitic stainless steels (ASS) are used in orthopedic implants due to their mechanical properties, human biocompatibility, and affordable cost. However, the high content of (Ni–Nb–N)-rich precipitates can cause allergic reactions and significant challenges in the manufacturing of prostheses. This study investigates the competition between work hardening (WH), dynamic recovery (DRV), and dynamic recrystallization (DRX) during the physical simulation of an ASTM F-1586 steel by thermomechanical processing, using the Kocks-Mecking and Avrami constitutive models. The parameters were obtained through continuous isothermal torsion tests at the temperature range of 900–1200 °C, strain rates between 0.01 and 10 s−1 and a total deformation of 4.0. Determined by compositional-analytical methods, the stacking fault energy (γsfe) was correlated with the stress level (σi) according to the Uesugi and Dai models. Results indicated a high activation energy for hot deformation (Qdef = 587 kJ/mol), affecting the shape of the curves. The γsfe value varied along the curves, delaying the onset of the DRX (σc = 0.928σp). Scanning electron microscopy (SEM) and transmission electron microscopy (TEM) analyses revealed a direct competition between work-hardened and recrystallized grains in the early part of the curves, due to WH-DRV synergy. After the peak stress (σp), the progress of DRX was slow, with the Avrami exponent (n) between 1.1 and 1.9, completing only after large deformations (σss = 0.714σp). The moderate γsfe value (69 mJ/m2) and fine precipitates of the Z-phase (CrNbN) (<20 nm) influence the grain boundary mobility during the DRV-DRX competition, delineating the stress-strain curve shape.