A Carteira Nacional de Habilitação precisa de renovação.

Because carteira is a feminine singular noun, so it takes a.

Also, Portuguese uses definite articles more often than English. In English, you might say Driver's license needs renewal in a very headline-like style, but in normal Portuguese, A Carteira Nacional de Habilitação... sounds more natural.

If you replace the full name with the abbreviation, you would still normally say A CNH.

Because this is the official full name of the Brazilian driver's license document.

When you use the official title of a document, capitalization is common:

• Carteira Nacional de Habilitação
• Cadastro de Pessoas Físicas
• Registro Geral

But in everyday language, people often use lowercase for more general terms, such as:

• carteira de motorista
• habilitação

So capitalization here signals an official, formal name.

Yes, carteira can mean wallet, but it can also mean a card, document, or license booklet/card, depending on context.

In Brazil, carteira appears in the names of several official documents. So here it does not mean a wallet you put money in. It refers to the official license document.

Here, habilitação means legal authorization/qualification to drive.

In Brazilian Portuguese, habilitação is very commonly used to mean driver's license in general conversation. For example:

• Tirei minha habilitação. = I got my driver's license.
• Minha habilitação venceu. = My license expired.

So in the full official name Carteira Nacional de Habilitação, the word habilitação refers to the authorization to drive.

Because the verb precisar usually takes the preposition de when it is followed by a noun.

So:

• precisa de renovação
• precisa de ajuda
• precisa de dinheiro

Without de, it sounds wrong here.

Because this sentence uses the pattern:

precisar de + noun

So:

• precisa de renovação = needs renewal

This is a very common and fairly formal way to say it.

A more verbal version would be:

• A Carteira Nacional de Habilitação precisa ser renovada.

That also sounds natural.

But:

• A Carteira Nacional de Habilitação precisa renovar
  is not natural, because the license itself is not the one performing the action of renewing.

A person can do that:

• Eu preciso renovar minha CNH.

They are very close in meaning.

• precisa de renovação sounds a bit more administrative, official, or bureaucratic
• precisa ser renovada sounds a bit more directly verbal: needs to be renewed

Both are correct and natural. In notices, forms, or official contexts, precisa de renovação is especially common.

Yes. Very often.

CNH is the standard abbreviation for Carteira Nacional de Habilitação, and Brazilians use it all the time.

So you could say:

• A CNH precisa de renovação.
• A CNH precisa ser renovada.

In everyday speech, this is often more natural than saying the full official name.

Not necessarily.

Precisa de renovação means that renewal is needed. That could mean:

• it is about to expire
• it has reached the point where renewal is required
• it may already be expired, depending on context

If you want to say clearly that it is already expired, Portuguese often uses:

• A CNH está vencida.
• A CNH venceu.

So precisa de renovação focuses on the need for renewal, not strictly on whether the expiration has already happened.

Yes, it sounds fairly formal and administrative.

It is the kind of sentence you might see in:

• official notices
• government websites
• forms
• bureaucratic communication

In everyday conversation, people might say:

• Minha CNH está vencida.
• Preciso renovar minha CNH.
• Minha habilitação precisa ser renovada.

So the original sentence is correct and natural, but it has a more official tone.

In Carteira Nacional de Habilitação, the de links carteira and habilitação.

A literal breakdown is something like:

• carteira = card/license/document
• nacional = national
• de habilitação = of authorization/qualification

So this de is part of the official noun phrase, while the other de in precisa de renovação comes from the verb pattern precisar de + noun.

They are two different uses of de in the same sentence.