Rain is fine for outdoor extension cords. Standing water is not.
Yes—outdoor-rated cords are designed to handle rain, but the connectors are the weak point. Keep the connection points dry and off the ground.
The cord itself has thicker insulation and weather-resistant jackets. That part handles rain fine. The problem is where the plugs meet—water can seep in, cause a short, or corrode the prongs over time. Use a covered outlet or one of those cheap plastic cord covers to keep the connection dry. And always plug into a GFCI outlet (or use a GFCI adapter). If the connection sits in a puddle, you’re asking for trouble.
Rain on the cord? No problem. Rain on the plug? Fix it.