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Gear drops are based on the monsters you are killing. Once you have fully identified monsters, you can look up exactly what they drop in the Beastiary and you can see their exact pools of drops (???? items are ones that you haven't seen drop yet, so those are presumably the good ones). Obviously, if you're killing lower-level monsters and not finding good stuff, then you have to go deeper and kill tougher monsters.
And yes, outside small +1 stuff like longswords and shields, you won't find items better than in the shop until you get around level 7-8 or lower, and you don't get the top-tier stuff anywhere but level 10 (or the set encounter Red Dragon on level 7, but that's because it's a set encounter of a level 10 monster, with that level 10 monster's drop pool).
The ring you found was a one-time drop from a set encounter on level 4.
Rule of thumb is that you can get get +1 stuff from level 4+, +2 stuff from 7+, and the top tier stuff on level 10 (or level 7 Red Dragon). As you go deeper and fight tougher monsters, the drop rate will get significantly better for more powerful stuff.