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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.
Find a pool of lava. There is no crafting recipe for obsidian. Instead, any time flowing water hits a stationary lava source block, the lava turns into obsidian. You can find stationary lava in the following places: Lava is easiest to find as lava falls in caves and ravines.