In the books the ring contains Lapis Lazuli a gem that was split in two from the girl who made both brothers into vampires and allows them to go into the sunlight without burning up. I would assume the same applies for the TV show.
At the end of the episode when his brother showed up he briefly alluded to the ring having powers that allowed Stephen to be out in the daylight without any ill effects. He did not go into great detail but said something like “where’s your ring, its almost daybreak”…
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