Some basic science...

There are 3 characteristics that matter when talking about IEM (or headphones) "power": 1/ the impedance (expressed in Ohms), 2/ the sensitivity (expressed in dB SPL/V) and 3/, the efficiency (also called sensitivity to confuse everybody!!! ...but expressed in dB SPL/mW). These characteristics are generally reported at 1 kHz per convention, but they may vary with the frequency. SPL stands for Sound Pressure Level--how "loud" your IEM sounds.
Let start with 3/: for the same sound level (the dB SPL numerator), a low-efficiency IEM will require more power (in mW, the denominator) from the dongle than a high efficiency one.
Now 2/: for the same sound level (dB SPL), a low-sensitivity IEM will require a higher voltage (in V, the denominator) from the dongle than a high sensitivity one.
The impedance 1/ ties 2/ and 3/ to the dongle: a dongle can be characterized by its max. voltage (e.g. 1, 2, 4 V RMS) and its max. current (in mA), or much more common, its max power (in mW, the product of voltage by current). The impedance of the IEM determines how loud (in dB SPL) the dongle can drive the IEM before hitting one of its internal limits--its max voltage, or its max. current / max. power. A 1V RMS dongle may not be able to drive adequately a high-impedance IEM due to not enough available voltage, even if it has enough available power. A low power dongle may not be able to drive a low-sensitivity/efficiency IEM due to not enough available power, even if has enough available voltage.
But as
@baskingshark said, you can forget about this for most IEM and dongle pairs: they'll do just fine! In a lot of (most...) cases, "power" is irrelevant--to use your example: a 4V RMS dongle used at 1/8 of its volume is not going to sound inherently "better" than a 2V RMS dongle used at 1/4 of its volume, or a 1V RMS dongle used at 1/2 volume... Sure, the 4V dongle has more "headroom", but it's really irrelevant when your IEM only needs say 500 mV RMS to reach insane sound levels or destroy it. Think about a car: if it needs 20 hp to maintain a normal cruising speed, it does not matter whether the engine can deliver 50, 100, or 200 hp, 20 hp is all you need at that speed.
None of the above tells you anything about "better sound". A 1V dongle
can sound better than a 4V one, but a 1V dongle will never sound good it is pushed to its volatge or power limit. Unfortunately (IMHO), there tends to be a correlation between better characteristics, higher limits, "better sound" and price of a dongle--higher price dongles may be better "engineered". BUT not always !!! Hence the importance of forum threads like this one...