Suppose we have a function $v$ of $x$ with a minimum at $x=0$. We have, for $x$ close to zero, $$v'(x) = v'(0) +xv''(0) +\frac{x^2}{2}v'''(0)+\cdots$$ Then as $v'(0)=0$ $$v'(x)\approx xv''(0)$$ if $$|xv'''(0)|\ll v''(0)$$
Which is fine. I am unable to understand this statement:
Typically each extra derivative will bring with it a factor of $1/L $ where $L$ is the distance over which the function changes by a large fraction. So $$x\ll L$$
This is extracted from a physics derivation, and I cannot get how they tacked on a factor of $1/L$
This is a rule of thumb rather than a rigorous statement (which is indicated by the word "typically"). Just look at $v(x)=\sin\frac xL$. The length on which this function changes noticeably is of order $L$. Now try to differentiate a few times. The next exercise is to take an arbitrary smooth function $V$ and stretch it $L$ times horizontally to get $v(x)=V(x/L)$. Now the change in $V$ that you felt at distance $1$ is felt at distance $L$ in $v$. Try to differentiate here. I doubt anything much more profound than this simple scaling observation was meant.