Throughout the development of single frequency fiber lasers (SFFLs), gain fiber is one of the most important components, which can greatly affect the quality of SFFLs. Here, we fabricated an Er: YAG crystal-derived silica fiber (EYDSF) using a CO2 laser-heating drawing technique, with a high gain coefficient of 1.74 dB/cm. Employing the EYDSF of only 10 cm as a gain medium, we constructed a continuous-wave ring-cavity SFFL with an all-fiber system. An ultra-narrow linewidth <660 Hz was achieved harnessing a homemade low-concentration Er-doped silica fiber as a saturable absorber. Importantly, the SFFL output power was up to 32.7 mW at 1560 nm. What's more, no multi longitudinal mode or mode hopping were found in 2 hours, and the fluctuation of power was <0.63% in 8 hours. Furthermore, the relative intensity noise was lower to -145 dB/Hz at frequencies over 1 MHz. The results indicate that the ring-cavity SFFL has desirable performance in output power, linewidth, stability and noise, which serves a prospective candidate applied to coherent optical communications, high-precision sensors, laser radars and other advanced fields.