Do you actually set the A record for it, or do you just set it up in /etc/hosts? Seems risky if it's the first.
I set a hostname on my router's dnsmasq service usually
Why risky?
You're needlessly exposing private information about your system to the public, which an attacker can use to learn about the structure of your setup, or to appear more credible during a social engineering attack.
And if the IP of the development system happens to be publicly routed, attackers might reach and infiltrate a probably insecure development system.
Ah yes I would agree. However, you're best off using a local dns server to route to a private subdomain. It is handy to use a public facing IP to also point towards your service though, if, and only if, you want it web accessible.