I'm no expert, but I would think that the amount of teflon on a pan is very little, not enough to worry about. If a burnt pan could do you any harm, I doubt they could sell teflon pans as it's not unheard of for someone to burn a pan!
If your OH is prone to burning pans, I suggest replacing the burnt one with a titanium coated non-stick pan. My wife is prone to burning things, I got fed up of replacing non-stick pans once a year so I forked out and got a titanium one which so far she hasn't managed to destroy. The nonstick is guaranteed for 25 years so I'm optimistic that this will survive longer than usual.
As regards getting rid of the smell - open windows and spray air-fresheners are about the best you can do. Spray ones should absorb the nasties into the liquid which will fall to the ground.
I once set fire to my oven. It had a broiler in (a grill in the UK). I had been making fireworks and had left a pound of gunpowder to dry in it over the weekend on a melamine plate, and gone away. I came back on Sunday night, forgot the gunpowder, and whacked the broiler on high to cook some naan bread. Next thing, there's a whoosh noise from the oven and a foot-diameter purple fireball came shooting out of the oven vent. It melted the plastic coating on a shelf, and created more smoke than you would believe. My 2 bedroom apartment was so full of smoke that you couldn't see more than a foot. The smoke was also full of ammonia, the melamine plate was burnt to a crisp and the plastic nasties had vaporised. Fortunately I always keep a gas mask handy in case of fire, so I popped that on and opened all the windows. It was late at night mercifully, if anyone had been passing they'd have seen smoke pouring from my windows and called the fire engines and I'd have had a lot of explaining to do to the police! it took about 3 hours for the smoke to disappear completely and it smelt for a couple of days. After such a lucky escape, I've never made fireworks since!
Has anyone seen reality? I'm sure it was there a minute ago