Context: there is a war going on. Actual use:

A difficult winter is heading their way. But Jonas means to change all that. He finds himself wondering how will history remember this day.

MS Word recommends how history will. Google search shows 98k results for how will history, 180k results for how history will.

EDIT: After more thought, I realized that even though I wrote this intending the intonation to be a question, I have not added the question mark, hence the problem. With a question mark and a proper separation of clauses in the phrase (i.e. a colon), Word doesn't complain anymore.

Bottom line: how history will is more common.

My writing style favors inversion. Even in speech I would prefer to say "how will history". It just makes a lot more sense to me. I have no idea why :).

The question? Why are these two forms both so popular? Is there a recommendation when writing literature as opposed to news articles or legalese?

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    Those are not interchangeable. It's not a question of style. Inversion is mandatory in some cases and forbidden in others. It's impossible to answer the question you've asked because you haven't given enough context. – tchrist Apr 8 '17 at 13:21
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    @tchrist Change the period to a question mark. Now is it grammatical? If so, ask yourself if changing the sentence-ending punctuation mark in writing or changing tone in speech (in English) can change grammaticality of an utterance. – Dan Bron Apr 8 '17 at 13:50
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    What do you mean that "italics & colons are not seen well in literature."? I think this is wrong. If used properly, italics and colons are perfectly fine in literature. – Peter Shor Apr 8 '17 at 14:07
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    @PeterShor I was going to upvote your comment about poorly-received punctuation marks, but then I saw you used parentheses, so now I can't trust you at all ;) – Dan Bron Apr 8 '17 at 14:35
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    @tchrist I think "is English unique or unusual in its permissivity of inversion" is a great question for ELU. – Dan Bron Apr 8 '17 at 14:53