Yeah, I wouldn't do it intentionally, or repeatedly, but a small amount of electrical smoke, which is what it likely was, probably from an insulator or something similar, isn't going to kill you or give you instant lung cancer. Repeated exposure probably isn't good, but a one off shot is nothing, unless you're breathing straight fumes from large amounts of burnt rubber or insulation.
Back to MY point. If there is smoke coming out of your unit, regardless of WHAT you think the fan is doing, or what kind of shape it's in, or the fact that you have a cooling pad (Which is largely useless anyhow, as they do nothing but cool the surface area on the bottom of the laptop, not the core components buried inside.), there is a reason for there being smoke and whatever that reason is, is enough to recommend discontinuing use of the unit and returning it for warranty or RMA. What you do is up to you, but I repair, upgrade and replace hardware on laptops all the time, for years, along with pretty much every other kind of computer system, and have never once seen smoke come from any electronic component without a good reason that was always BAD.