There is an example of "how to do this" on Stuart Colville's blog, but the example used there and the explanation of why it works is unclear.
To keep things simple:
Let's say you have a bash alias like
alias rxvt='urxvt'
which works fine.
alias rxvt='urxvt -fg '#111111' -bg '#111111''
won't work, and neither will:
alias rxvt='urxvt -fg \'#111111\' -bg \'#111111\''
So how do you end up matching up opening and closing quotes inside a string once you have escaped quotes?
alias rxvt='urxvt -fg'\''#111111'\'' -bg '\'#111111'\''
seems ungainly although it would represent the same string if you're allowed to concatenate them like that.