When is it necessary to have SSL on the LAN side of a reverse proxy (between the reverse proxy and the server)? - eviltoast

Without SSL on the LAN side of a reverse proxy, I presume that all traffic between the server and the reverse proxy is unencrypted and, thus, accessible to any device on the LAN.

Which specific scenarios result in this being a concern? The primary concern that I can come up with is if you know that there are untrustworthy entities connected to the LAN (untrustworthy devices, or perhaps malicious individuals).