I assume you mean retard the timing. Why would retarding the timing cause more heat? I would think that advancing the timing would cause more power and more heat. Don't know. Just curious. Lower octane fuel is higher power fuel so that would cause more heat I guess. All other things equal.
Delayed ignition means the fuel is still trying to burn later into the power stroke. The rate of thermal decay is slowed with more heat radiating (wasted) to the piston, rings, and cylinder walls (and coolant). It also increases EGTs and contributes to valve and valve seat wear, specifically more so on the exhaust side. It reduces cylinder evacuation of spent gases and heat, increasing residual cylinder temperature and reversion during overlap. It's why retarding ignition timing reduces intake vacuum and creates a rougher, less efficient idle.
Many OEMs delay ignition timing during the warmup phase for this reason. It brings the engine and coolant up to temperature faster. The spark then advances to a more ideal range once near operating temperature.
Several years ago, a friend brought his early 80s FSB by for me look into an overheating problem. It had a 388W (351W w/ 3.75" stroke and +0.060" overbore) and he couldn't keep the temperature down at low speed around town and while idling. It would cool down once on the highway, but sitting a long light, the coolant temp would creep to 220+°F. He put in a bigger radiator with better fans cutting on a lower temperature and a high volume water pump to try to stop the issue, but it would still creep up. His engine builder told him it was because the block was bored +0.060" and there's nothing he can do about it. (that's a myth, btw) The first thing I looked at was the vacuum advance on the distributor and saw it was on ported advance. I moved the hose from ported to a manifold source, which increased his idle spark advance from 10° to 22°, and it stayed at 190-195°F after 20 minutes of idling.
A lot of gearheads still screw this up and want to put no vacuum advance or ported advance on their classic car and hot rod because that's the way the OEM had it. The OEM did it because it hastened warmup and reduced nox emissions. If you're not trying to warm up the engine in the cold of winter or trying to pass a tail sniffer, you're just making the engine prone to overheating for no benefit.