Within BIOS, thermal monitoring features are disabled as this is control by the missing Operating System. Processor temperatures are expected and normal to be higher within BIOS, as no thermal monitoring is happening.
Processor 1 temperature is 54°C while processor’s 2 temperature is 40°C.
Each processor has a TCase value and this can be found at: http://ark.intel.com/products/37096/Intel-Xeon-Processor-E5506-(4M-Cache-2_13-GHz-4_80-GTs-Intel-QPI) (76°C).
The TCase is a number established by Intel® as a point of reference in order to understand what could be expected as per normal processor temperature.
Anything from the Tcase and below will be the expected temperature of the processor in normal use, anything that doesn't stress out the processor (watching movies, burning CDs, browsing the internet, creating documents, etc.) When the processor is stressed out meaning that you are running heavy processor applications that take control of the CPU or uses it at 100% the temperature will go beyond the Tcase. It can perfectly reach 85 to 90 degrees and the processor will still be OK. The cooling fan is in charge to keep that temperature there.
If the processor temperature reaches 100 degrees or more it will send a signal to the motherboard to shut down to prevent mayor damages and most likely it won't be possible to turn the computer back in until it cools down.
The normal processor temperature will depend on the chassis type, the hardware involved and the location of the computer, and it usually is lower than the Tcase.
Taking into consideration how the processors work and its specifications, both processors are properly working.