what is Index Coverage issue?

Usually this is when google crawls your site and finds a issue on your website. You may also want to check the sitemap you submitted to google webmaster tools for any errors. It depends what the issue is, most of the time it will be 404s missing pages or urls pointing to pages that dont exist anymore, caused by incorrect spelling, or robot.txt file blocking a spider or a host server being unavailable, you simply have to resolve the issue on your next deep crawl the issue will be removed from console.
 
Is this index coverage issue effect website ranking?
No not directly or immediately google understands that websites are big and we cannot always maintain everything, BUT

if the problem persists ( meaning stays there and get more ) google may see your site as poorly maintained and that run into error pages ( bad user experience on your site ) and that will affect ranking.

Also the index issues means that some pages are unreachable maybe these are pages with valuable content for ranking so you must fix it.

Its not a big problem, you just needs o find out where its coming from and resolve it.

Download website auditor and look for broken links I use this software, its really good and free also it get updated https://www.link-assistant.com/website-auditor/
 
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The new Search Console Index Coverage Issues report is a better tool than old search console which combines the old Google Search Console Webmaster Tools indexation reports through sitemap feature. This new feature called “Index Coverage Report” provides you information about how Google is crawling and indexing your web pages you’ve submitted through submitting XML Sitemap.
 
The index covering issues is used to see whether your website has meta tag or your sublink has some information of it. If it is a blank URL which consists of no description or meta tag. Then google will indicate you as a index covering issues and you need to resolve it.
 
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