Since Curved Horn's damage increase counts as flat damage, its damage up is applied after every calculation, but before damage multipliers. As a result, it is not subject to the lower effect in damage that other damage-boosting items are subject to. Other flat damage increasing effects, such as those granted by Death's List or Void, share this rule.
Curved Horn is still affected by damage multipliers, both beneficial ones (such as Cricket's Head or Eve's Mascara) and detrimental ones (such as 20/20 or Soy Milk).
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This trinket is a curved ram horn, similar to those granted by Aries or shown on The Lamb.