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When you run electricity thru a copper wire you generate heat due to resistance. If you have a cord that is coiled tightly on a spool, and then run a lot of amps thru it you're going to generate heat. If you have poor insulation and don't have adequate ventilation you can cause the insulation to melt.
RV power cords are designed to carry heavy loads, their resistance is low and the insulation is high. Chances of building up enough heat in a coiled cord to cause a problem is very low. I would have never coiled my cord in a bucket if I thought it would be a problem.
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