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You will need to create dns zones and records for your sub domains.
You will need a subdomain for asdf.example.com and another subdomain for service.asdf.example.com And then create a ACM cname record in there
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Having the CNAME env.service.example.com exist in Route 53 before making the cert isn't required because I can make loremipsum.example.com certs without a corresponding CNAME record. It only fails if there's multiple nested subdomains.
That’s because loremipsum.example.com is part of your top level domain. You will need to setup sub domain zones to have more levels in your certificates. If you want sub.sub.example.com then you will need the extra DNS zones.