Fine wood is an item mainly used for building structures, furniture and crafting.
It is an important resource to progress further in the game.
This type of wood is obtained by chopping down Birch and Oak located in Meadows,
or Plains biomes.
Unlike other trees, you are going to need a Bronze axe to chop them.
To acquire a Bronze axe,
you need to defeat Eikthyr(first boss) --> craft an Antler pickaxe --> mine required ore (tin and copper) --> smelt them --> combine to bronze.
A second way to get fine wood, if you are lucky to find them, is by destroying (Bronze axe not needed) Shipwrecks on the coasts of the Black Forest.
Another option is to find Troll and force him into destroying the trees, but this process is really annoying and time-consuming.
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