Not a stupid question.
Audio quality can be improved almost indefinitely. I have listened to PCs, MACs, iPods, iPads… stand alone streamers (special built PCs that look like audio components) through all sorts of DACs. For example my headphone system (see my user ID) now has a $3,500 streamer, a $5,000 DAC, and a $6,000 headphone amp. This system sounds better than any of its predecessors… and there have been many.
So, a separate high quality DAC will sound better than using one in your PC. PCs are horribly noisy places for audio. A separate streamer will greatly increase the sound quality by getting the PC out of the equation.
Getting your feet wet. You have to decide how much climbing this road to better sound is worth to you. It can be frustrating and expensive or supply a lifetime of audio satisfaction.
I would start by getting a good set of headphones… this will give you the ability to hear the differences changes in source equipment you make. Companies like Focal make headphones that do not require enormous power to drive. Most folks after they upgrade headphones will get a separate amp, this will drive your headphones to have greater impact and dynamics. After that comes a DAC… this will add detail greatly beyond the little chip on your sound card. Finally, a dedicated streamer… this gets the PC completely out of the picture… reduces the noise floor and does amazing things.
About files. First there were CDs, then SACD, high resolution files to purchase, now streaming services. If you are thinking of any but the last, I would skip it. For $14.95 / month with Qobuz you get access to 500,000 high resolution albums and millions more. Qobuz is the preferred service among folks interested in high quality audio. Tidal is second. I recommend you start with Qobuz… if you climb up the audio ladder you have the right service with the most high resolution albums… and it will only get better over time. So, you join the service and listen… from your PC and any other device you own.