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Yes and no.

'Discovered' items do not change their level. That means any weapon you own, either on your character or in storage. Also, it counts for any location you have entered. So if you entered a location at Lv6, but immediately left and did not return until you were Lv40, the items in chests will be levelled for a Lv6 character still. No matter what level you are, these items will not change their levels.

Anything in an unentered area will continue to level up until you enter it though. So if you are Lv40, a cave you enter for the first time will have levelled loot for a Lv40 character.

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13y ago

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