Low dropout type.a voltage regulator IC.
to have a constant voltage output
He may think he wants voltage regulation, but a laser diode needs current regulation.Correct. Poster wants voltage regulation
Which is fine if your voltage supply is high enough. It will not work with a LiIon battery except when it is nearly fully charged.I powered my laser diode with an LM317 configured as a current regulator.
How about something much simpler like a series resistor to drop the 4.0 volts to 2.8 volts when the current is something less that 350 mA?? Then as the battery voltage drops the laser power will drop a bit also.How about something more complicated to have a constant voltage output as the battery voltage drops?

What is done with the sensed temperature signal?Quite a few laser diode packages do include a temperature sensing diode for use in a similar sort of scheme.