He doesn't drop anything. But if you are on the quest for the black knight, he drops the piece of armour.
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Kill Gell Oh No in the well (/join well), the greenguard dragon in the cave in greenguardwest, the greenguard basilisk in trunk (/join trunk) and deathgazer in deathgazer's realm (/join deathgazer).
Wings of Tephra (member only) and Mafic Wings
you have to beat the 4 boss`s in greenguard forrest.place`s to find them:join trunk,join deathgazer,join well,join greendragon.
From deathgazer (/join deathgazer)
Dread spider doesn't drop capes.