My OP8 gear was lowered to OP7

I’ve been running through the new dlc on my lvl 72 character, I’ve gotten a little ways in and i realized when i opened my inventory all my OP8 gear is now for OP7, most of my gear I spent many many many hours grinding for and I’m not happy about it being lowered. Will this go back to normal when I hit the new level cap?

This is correct. The “OP Level” indicator at the top is a relative indicator; the item’s actual level is numeric. Old OP8 gear (pre-Commander Lilith) was actually level 80 so +8 over your character level. Now that the max cap is 80 and you can level up, you’ll catch up to your old gear. When you are level 80, it will simply be level 80 as well (OP 0 or 0 levels above you.) Once you hit level 80, you’ll be able to use your existing OP unlocks and obtain new OP gear, as well as attempt the Peak again for OP9 and OP10.

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Does that mean that OP 10 is basically lvl 90?

Exactly.