Yes, there are a few ways to increases sight radius in caves. Minor spoilers ahead:
Just having the wolf and owl form passively increases the sight radius in caves a little. And in town you can buy glowstones, who also passivley increase sight radius. The higher your reputation the more of them will be aviable in the shop.
And finishing that quest also unlocks the form that lets you see perfectly in caves.
Hope this helps, feel free to ask more if something is unclear!
