Toxic is in the eye of the beholder.
Storing fine linens in plastic is NEVER a good idea. But I have used dryer sheets on my shelves in the linen closet to keep things fresh.( I have the coated wire shelving in my closets.)
Here is what I have been told.
* Let linens breathe. Use containers/ shelving that allow airflow. A mesh container keeps napkins organized and allows air to circulate. When the lid is not sealed, underbed storage boxes are a good option.
* Store in a constant temperature. Natural fibers don't enjoy extreme temperature changes. Attics or basements are not good for storing linens.
* Pamper with paper. When storing linens flat, line hardwood surfaces with white tissue paper or white fabric. Woods, especially cedar, contain oils that can be harmful to linens.
* Hangers can help. Hang tablecloths and bedding in closets on drapery hangers. Fold a rectangular cloth so it fits on a hanger. A round cloth is folded to form a triangle. Refold to avoid creases. Insert tissue paper between the folds.