Coming in rather late, although we use the term 'flake' on the Spirit of New Zealand I always understood the distinction to be as defined by cobble above, 'coiling down' prior to use is 'faking' laying out in long parallel lines for a fast snag free run out is 'flaking'. Nonetheless, I agree with chanteyranger, there is probably no universally 'correct' usage. Go with the term used on the ship you are currently sailing.

On the subject of origins etc, the OED includes in the original (ME) definitions of 'flake' a bundle of parallel threads' which seems to me to be a pretty accurate description of a flaked line.

Pete M