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Next is the Stalactite layer, where you'll find iron. Then the lava layer, which has diamonds. Finally the corrupt layer, with diamonds and lumite. Best bet for finding obsidian is to check all the surface caves in the area. If one cave doesn't have any, move onto the next one. Eventually you'll hit a vein.
Obsidian Ore. Obsidian Ore is found in Obsidian Nodes embedded in rocks on the Fossil layer not far below the surface and also inside of rocky Mountains. Nodes are sometimes visible in the walls/floors/ceilings of caves or can be discovered by digging mineshafts yourself.