You want it rather sharp. Insulating wrappers on electrical wires are generally tough plastic - the idea is to lightly score around it, then cut a strip of it off and then peel the rest away. You want it sharp because you run into the same issues as you would with any dull knife - you have to press harder or work it around too much and that risks damaging the surface of the wire.
I'll use this cheap knife with not-so-sharp blades to illustrate.
First, I'll use the sheepfoot to cut through the outer jacket on this Romex.
Make a small slit, enough to get the paper wrapper out - sometimes you can use the paper to split the outer jacket the rest of the way down but it usually doesn't work out like that. The ground works fine for that purpose.
Then bundle the sheath and paper up and cut the excess off.
Isolate the wires and select one to strip. Use the e-blade, the tip isn't sharpened - which is nice, you often don't have the luxury of space so you won't jab into or cut anything you don't want to.
Lightly score a ring around the jacket and then, at an angle, cut a strip up towards the end. Scoring with a dull blade isn't particularly effective. A sharp blade and experience will allow one to score just right and then pull the jacket right off.
Peel back the jacket and cut the excess off.
Examine the wire for any dings or nicks. If it looks clean, you are good to go, move onto next wire. If it looks like the wire below, start again. This shows what scoring too deeply will look like, as well as what a poor cutting angle will achieve.