To improve the quality of the stitchout, you need to add underlay. Underlay helps stabilize fabric and reduce distortion due to the pull effect. It also provides ‘loft’, raising cover stitches and preventing them from sinking into soft fabrics. When no underlay is applied, the embroidery lays flat on the fabric. It not only looks flat, but the underlying fabric often shows through. New digitizers might be tempted to increase stitch density but it is more effective to apply a proper underlay.
Note Use fabric settings so that the machine will take into account the type of fabric you are stitching on. See also Working with fabrics.