I haven't played Skyrim in awhile and I wanted to get back into it but I'm looking for a certain mod feature that I remember reading about in a mod somewhere.

I like some of the ideas of Morrowloot, but I don't want to remove Dwemer/Orc/Elven+ etc loot altogether from leveled loot lists. I remember reading a mod that limited, for example, Dwarven weapons/armor loot to Dwemer ruins, Orcish armor and weapons to Orc strongholds. Steel Plate and scaled might be found at higher levels in Nordic ruins.

I reread the descriptions of SkyRe and SPERG, but I didn't see this mentioned.

I have used the search function both on this forum and Nexus/the web, but I'm not having any luck. Am I dreaming or did I actually see a mod with this somewhere?

Well Morrowloot adds dwemer to dwemer ruins, and orchish to orchish strongholds, elven to Thalmor and so on, so I'm guessing you saw it in that mod description. It's just not added to leveled lists, but to actors and locations in the gameworld.