How about this?

-- Using Common Table Expression (CTE) to get Ecode date ranges to process

WITH EcodeDateRanges AS

(

SELECT dayBefore.Ecode, cl.Startdate, cl.Enddate FROM dbo.Absentdata dayBefore

JOIN dbo.ContLeave cl ON dayBefore.Absentdate = DATEADD(DAY,-1,cl.Startdate)

JOIN dbo.Absentdata dayAfter ON cl.Enddate = DATEADD(DAY,-1,dayAfter.Absentdate)

WHERE dayBefore.Ecode = dayAfter.Ecode

),

-- Using a recursive CTE to get the individual dates covered by a range

dateLists AS

(

SELECT edr.Ecode, edr.Startdate AS AbsentDate, edr.Enddate

FROM EcodeDateRanges edr

UNION ALL

SELECT dl.Ecode, DATEADD(DAY,1,dl.AbsentDate), dl.Enddate

FROM dateLists dl

WHERE DATEADD(DAY,1,dl.AbsentDate) <= dl.Enddate

)

--INSERT dbo.C15LL ( Ecode, Absentdate )

SELECT dl.Ecode, dl.AbsentDate FROM dateLists dl;