Used typically in context of Soulsborne/Souls-like games. A Peach Heal is the consumption of a healing item or material for a much smaller gain then it would be worth in order to play safer.
Peach heal has a different threshold for everyone, but most players would agree that healing with only 20%- 30% of your max health missing would be a Peach Heal.
Dumas: "You only need to use one flask charge to get back to 2 hits from death."
Toasty: "I use two just to be safe."
Dumas: "What a Peach Heal."