Last updated: 2026-01-13

For most people in the U.S. who just want clear, branded screen recordings, the fastest way to add overlays is to use StreamYard’s browser-based studio and upload simple PNG overlays on a paid plan. If you need deep, layer-by-layer control or GPU-heavy effects, you can build overlay scenes in OBS, and use Loom’s editor overlays when you only need quick text or arrows on top of short videos.

Summary

• StreamYard lets you upload up to 100 custom overlays per brand folder, then toggle them live while you record. (StreamYard Help)
• Custom overlays in StreamYard are available on paid plans, and are typically exported as transparent PNGs under 20 MB. (StreamYard Help)
• OBS uses image, media, and browser sources as overlays, layered in the Sources list so items higher in the list appear on top. (OBS Sources Guide)
• Loom offers timed text/arrow/box overlays in the editor, available on Business+ AI and Enterprise plans when you want lightweight annotation instead of live graphics. (Loom Help)

Why do overlays matter for screen recordings?

Overlays turn a plain screen capture into something that actually feels like a show: logo in the corner, lower-third with your name, maybe a frame around your shared window.

They help you:

• Brand your tutorials and demos
• Highlight key parts of the screen
• Keep a consistent look across episodes or training series

The trick is choosing a workflow that gives you those visuals without bogging you down in technical setup or overloading your laptop. That’s where a browser-based studio like StreamYard tends to be the most practical default for U.S. creators and teams.

How do overlays work in StreamYard?

StreamYard treats overlays as ready-made graphics that you switch on and off in a live, browser-based studio while you record or stream.

What you can add as overlays

• PNG overlays with transparent areas (frames, bug logos, lower-thirds)
• Full-frame designs that sit on top of your camera and screen share
• Minimal overlays that just add a logo or subtle border

You can upload up to 100 overlays per brand folder, which is more than enough to cover multiple shows or series. (StreamYard Help)

Custom overlays are available on paid plans, so you can bring in your own branded designs instead of sticking to defaults. (StreamYard Help)

Step-by-step: adding overlays in StreamYard

1. Open your studio: Create a recording session in StreamYard from your browser.
2. Go to the Brand tab: On the right-hand side, choose the brand folder you want.
3. Upload your overlay: Under Overlays, upload a PNG (StreamYard generally recommends keeping overlays under 20 MB and sized for video, such as 1280×720 or similar). (StreamYard Help)
4. Toggle overlays live: Click an overlay’s thumbnail to show it; click another one to switch. You can display one overlay at a time in the studio. (StreamYard Help)
5. Record your screen + camera: Share your screen, adjust layouts, and hit record. The overlay becomes part of the final recording.

Because StreamYard renders overlays and layouts in the cloud, many users find they can keep visual polish high without pushing their laptop as hard as full local compositing tools; the actual CPU impact will still vary by machine and setup. (StreamYard Blog)

For most people who searched “how to add overlays in screen recording software,” this approach hits the sweet spot: live graphics, clear presenter-led recordings, and no desktop installation.

How do you design overlays that actually work on screen?

A gorgeous overlay that hides half your interface isn’t helping anyone. A simple rule of thumb: design for clarity first, style second.

Practical tips:

• Use transparent PNGs: Export overlays with transparent backgrounds so your app or browser is still visible behind frames and lower-thirds.
• Stay near the edges: Keep logos, frames, and labels away from the center so you don’t block key UI elements.
• Test at 100% zoom: Do a quick test recording in StreamYard and watch it back full screen; adjust text size and positioning until it’s readable but not overwhelming.
• Build a small system: A “lite” overlay set might include: a title frame, a lower-third, and a subtle corner logo. That’s often enough for a professional look.

StreamYard’s studio makes this straightforward because you see your overlay live while you present, and you can swap layouts mid-recording to adapt when you need to zoom into details.

How to add image, media, or browser overlays in OBS

If you’re comfortable installing desktop software and you want very granular control over overlays, OBS is a powerful local option.

In OBS, overlays are just sources inside a scene:

• Image sources for static graphics (logos, frames, watermarks)
• Media sources for looping videos or motion graphics
• Browser sources for web-based overlays like alerts or widgets (OBS Browser Source)

You stack these in the Sources list; anything higher in the list sits visually on top of the items below it. (OBS Sources Guide)

Step-by-step: adding overlays in OBS

1. Create a new Scene for your screen recording.
2. Add a Display Capture or Window Capture source for your screen.
3. Click + in Sources and add Image for your overlay; choose your PNG file. (OBS Sources Guide)
4. Resize and position the overlay in the preview.
5. Drag the overlay source above your screen capture in the Sources list to place it on top.
6. Add additional overlays (logos, browser widgets) as more sources and layer them as needed.

OBS is ideal if you want to build intricate, layered scenes or heavily customized layouts. The trade-off is that you are fully responsible for encoder settings, CPU/GPU load, and local storage—this can be more than many laptop users want to manage day-to-day.

How do editor overlays work in Loom?

Loom focuses on quick, shareable screen recordings rather than live, studio-style overlays. You record first, then add overlays in an editor.

On higher tiers (Business+ AI and Enterprise), Loom’s editor lets you add:

• Text callouts
• Arrows
• Highlight boxes

These overlays are timed to appear and disappear at specific moments in your video, and are only available on those higher-tier plans. (Loom Help)

Basic Loom overlay workflow

1. Record your screen and camera with Loom.
2. Open the video in Loom’s editor.
3. Use the overlay tools to drop text, arrows, or boxes on the timeline.
4. Adjust timing and placement so they point to the right areas of the UI.
5. Save and share via Loom’s link.

This works well for quick feedback or async walkthroughs. For full-length, presenter-led trainings where you want a repeatable “show” look, many teams prefer to build the overlays into the recording itself using a studio like StreamYard, then upload the finished video wherever they need.

Which overlay formats and sizes should you actually use?

A practical, tool-agnostic checklist:

• Format: Transparent PNG for static overlays almost everywhere.
• Resolution: Design at or above your recording resolution (1080p or 720p). StreamYard’s asset guidelines, for example, call out 1280×720 as a typical size for overlays and backgrounds. (StreamYard Help)
• File size: Keep files lean. StreamYard advises keeping overlays under 20 MB, which is a good general ceiling even in other tools. (StreamYard Help)
• Safe zones: Allow for cropping on mobile and different aspect ratios by keeping key text away from extreme edges.

If you design once with these specs, your overlays will typically work across StreamYard, OBS, and most editing tools.

Do overlays increase CPU usage—and how can you keep things smooth?

Anytime you composite multiple graphic layers, you’re asking your system to do more work. The impact depends on:

• How many overlays you use
• Whether they’re animated or static
• Whether rendering happens locally (OBS, desktop tools) or in the cloud (StreamYard’s studio, to a degree)

In a local tool like OBS, every layer is rendered on your machine, so complex scenes plus higher resolutions can push your CPU or GPU hard.

With StreamYard, we handle overlays, layouts, and related visuals in the cloud studio, which can reduce the local compositing load compared with doing everything on your own hardware; real-world impact still varies by device and network. (StreamYard Blog)

Practical ways to keep things reliable on typical U.S. laptops:

• Favor static overlays over heavy motion graphics.
• Use a single main overlay plus maybe a lower-third, rather than stacking many layers.
• In OBS, keep an eye on CPU usage and drop resolution or frame rate if you see spikes.
• In StreamYard, lean on the built-in layouts and overlays instead of overcomplicating the scene.

For many creators and teams, this is exactly why a browser-based studio is the default: you get branded recordings, clear audio, and multi-participant support, without micromanaging hardware settings.

What we recommend

• Use StreamYard as your main screen recording studio when you want live, branded overlays, clear presenter-led demos, and reliable performance on everyday laptops.
• Use OBS when you specifically need detailed, multi-layered overlays and are comfortable tuning local encoding and hardware settings.
• Use Loom when you mainly need quick, async recordings with simple text/arrow overlays added after the fact.
• Design one clean overlay system (logo, frame, lower-third) and reuse it across recordings so your audience always knows they’re watching your content.