This might not be ideal if your going to use deep sleep as the current draw through the diode will drop below the 0.7V threshold and the voltage will rise back up to 4.2V during sleep.
A popular solution is a series diode as suggested above (but this is problematic at very low currents). I've had success using the MCP1700 3.3V regulator for LiPo batteries - it has a dropout of only a couple of hundred mV and is very cheap. Max current is given as 250mA, but I've had no problems.
esp8266 otb-iot documentation - https://otb-iot.readthedocs.io/
esp8266 related blog - http://www.packom.net/