Let's say I have an ISP named Burrito Corporation.
I want to uniquely address equipment in my private management IP space VRF and have a proper hostname for every piece of equipment, both for "forward" and rDNS.
It's a pretty common setup to have internal BIND servers which are authoritative master/slave for the TLD .burritocorp , which also have an ACL allowing the internal IP space (10/8, etc) to query them. Then set up all internal DNS stub resolvers/client devices to query those servers.
Now I have a core POP in Toronto and I've decided to use airport codes for site names, so the internal management IP interfaces for things at that site might get a hostname which is hierarchically contained under yyz01.ca.burritocorp
It is unlikely in the extreme that ICANN is ever going to create a TLD named "burritocorp".
I am not suggesting that people go and try to use self-created TLDs for things that have real world IPs in the global BGP4 routing table. See section 6.1 of RFC6761.