We were feeling hungry and laid down a large piece of cloth on the grass so we could sit down and eat.
Better: We were feeling hungry and laid a large piece of cloth down on the grass so we could sit down and eat.
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Better:
We were feeling hungry and laid a large piece of cloth down on the grass so we could sit down and eat.
DiceWe were feeling hungry and laid down a large piece of cloth on the grass so we could sit down and eat.
I would place the connector so earlier. Laying the cloth down is not very related to being hungry, but it is more related to sitting down to eat. Still, it's your choice.
We were feeling hungry, so we laid
By the way, we normally call that large piece of cloth a blanket when it's for a picnic, a picnic blanket if it is a dedicated piece of cloth. Also, I'd normally say I spread it on the grass. Of course, if it is just a remnant from a bolt or something, you can call it whatever you want (but I would still spread it).