That is almost certainly a power supply bypass capacitor. Its failure means there's more electrical noise on the power supply lines of the board. This could cause all sorts of unpredictable behavior - possibly including no change.
Electrolytics usually die by drying out or leaking their guts out over the years.
I doubt the value is critical. A bigger valued replacement would be fine. I would replace all the other electrolytic caps of the same value at once. I see at least two more in your photo.
'89 LX 5.0, Crane 2040, Pro-M 80 mm, 65 mm TB, ported stock intake & E7TE heads, 24 lb injs., JBA shortys, cat X-pipe, A3M1 (GUFB strategy) w/Moates Quarterhorse, BE & EA, close ratio T5Z, 3.55 rear