The Rings of Power is not associated with The Lord of the Rings films by Peter Jackson, but the Iron Crown worn by Sauron may be one of the most iconic images it borrowed from that version of Middle-earth. Sauron was depicted wearing it in flashbacks in the films, and it’s been shown in a few scenes in Rings of Power already as well. It’s implied to be the crown worn by Sauron’s former master, Morgoth, which he adorned with the Silmarils in the War of Wrath during the First Age.
In a Season 2 flashback, we saw Sauron attempt to take Morgoth’s place as ruler of the Orcs, instructing Adar (Joseph Mawle) to place the crown on his head. Instead, Adar turned the crown over and stabbed Sauron in the back with it, seeking freedom for the Orcs. After that, it took Sauron years to gather energy, assume a human form, and manipulate his way into the elves’ inner circle.
It’s worth noting that in J.R.R. Tolkien’s books, Morgoth’s Iron Crown does not exist in Middle-earth at this point. At the end of the First Age, the crown was beaten into a collar and fixed around Morgoth’s neck, which he was apparently wearing when he was cast into a timeless void outside of the universe altogether. However, all this happened in The Silmarillion, which is not the source material for The Rings of Power. The show is based only on the history contained within The Lord of the Rings books themselves, and here, it seems to taking creative liberty.
With that in mind, it’s possible that this crown won’t confer any new powers onto Sauron. As it is, the rings themselves have become a big focus of the story, and he still needs to forge the One Ring and gradually imbue it with his power. The crown could simply be an easy visual cue for his assumption of power and his open association with evil. It’s a strong callback to the movies as well, and could potentially create a sense of continuity with the flashbacks to Sauron’s defeat there.