Hard to say without pulling it out. Best approach is to pull up some DIYs on how to put a new inner boot on and decide if you want to tackle the job. It is fairly easy, but easy is subjective. If you think you can handle it then call NAPA (or who ever) and source the boot, but at the same time source a complete replacement axle. (Be careful here as some have consistently and repeatedly received the wrong axle - I believe it is engine dependent.)
Now that you have your parts sourced, and know how to take the axle apart to replace the boot, remove it from the car and cut the boot off. Try to save the CV clamps as many have issues with the replacements in the kit. Once the boot is off use diesel or what ever solvent you elect and clean it up really well. You are looking for gouges, scratches and signs of really bad wear. If the axle joints and related look solid then just buy the CV boot kit, if not bring the axle to the shop and exchange it when you pick up the new one.
Actually you could bring it with you to make sure the boot kit is the right one and get a second opinion.
The worst part of the job is cleaning up the axle grease, but in your case it looks like most of it is gone.
Thanks for your feedback. I do not mind getting greasy, that can be cleaned off.
I already ordered a new axle for the driver side so I will try to replace that. Never done it before but after replacing the struts with new coil spring seats, strut mount and PVC system, I think I can do it.
I bought a new axle from AZ and while that one is in, I can take time to rebuild to original Volvo axle.
1997 850 NA Wagon - 261,000 miles - Is no longer
2004 V70 NA Wagon - Saved my life
2004 S80
Take some measurements and some pictures of the original axle with you when you pick up the new one to make sure you receive the correct part. As I said before a couple of people have had issues with the wrong CV being ordered - save a trip and some frustration.
Today I installed a new axle (driver side) from AZ (part 10929N / $89) and it fits perfectly. Took the car for a drive and no issues at all.
The old one looked exactly the same as the this new one, but I do not know if the old axle is a Volvo one or an aftermarket one.
Next weekend I might do the passenger side, both boots in that axle are cracked.
1997 850 NA Wagon - 261,000 miles - Is no longer
2004 V70 NA Wagon - Saved my life
2004 S80