There are certain compounds present that can cause damage to tissues and severe irritation of skin. There is also concern of cedar shavings containing oils that have been found to be potentially carcinogenic but that end of the spectrum may be a bit of a stretch.
I wouldn't worry too much about cedar on fire in a forest. If you are concerned, you can always run an air purifier in your snake's room.
http://www.anapsid.org/cedar.html
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