No Stupid Questions

There's a couple misconceptions in this thread.

Yes, Teflon can release some gasses if overheated, but it's not likely going to cause you any real harm. As long as you're turning on the range hood while you cook, it's basically a non-issue. Teflon really only releases fumes at very high temperatures (usually over 500F), and foods that are being cooked at that high heat aren't really going to be needing a non-stick coating to begin with, so you'd ideally want to use a different type of pan for foods cooked at very high heat in the first place.

If you really huff the fumes intentionally, you might give yourself a headache/fever (look up "Teflon flu" for more), but it's not likely gonna kill you. However, some pets may be more susceptible to Teflon fumes, particularly birds, who can very easily die from Teflon fumes, so be cautious if you have any animals in your home.

As for the aluminum underneath, that's also largely a non-issue. Aluminum is safe to cook with in most applications. It's even relatively safe to consume, and it's actually used in many common medicines (like aspirin and antacids) and also as a food additive in some cases. There's a reason why acidic foods like tomatoes and pineapples are canned in aluminum; because it's safe to do so. If a little aluminum from the can/pan leeches out into the food, it's not a big deal as it'll pass through you unnoticed. It's only really a concern if you already have issues with high amounts of metal consumption in your diet. Some people believe that aluminum can cause or accelerate certain conditions like Alzheimer's, however I believe those studies have been mostly inconclusive, last time I looked into it.

The bigger issue is that you risk getting chunks of the Teflon coating breaking off of the pan and getting into your food. While it'll pass through you mostly harmlessly, it's still not ideal. And it's just gross.

I'd recommend tossing that pan and getting a new one and only using it for low/medium-high temps, as well as picking up a stainless steel pan (assuming you don't have any metal allergies), and use that for things that need more heat to cook.

Also, be gentler with your pans, in general. It looks like you've been sticking a fork or some other metal utensil in there, which is a bad idea. If you're using a metal spatula or something, stop that; just use plastic/rubber/wood on your non-stick items. If you're hand-washing it, just use a sponge or a soft brush, but don't use anything abrasive like steel wool or those sponges with the "hard" side for grease and grime, as those can also rapidly degrade the Teflon coating.