You can add an overlay using video editing apps, CapCut, InShot, or Adobe Premiere Rush is also good. You can import your video, add text/stickers/images, then export in vertical (9:16) format.
In order to add overlays in editing YouTube shorts:
Select an editing App- This can include CapCut, InShot, or Adobe Premiere Rush as editing apps that work on mobile devices.
Import Your Video -Open your Shorts clip on the program.
Add Overlay -To add images, text or graphics on your video use the overlay option or sticker option.
Control Timing and Position - Drag the overlay layer to indicate the timing when it should appear on-screen and monitoring by the user and where it should be positioned on-screen.
Export Vertical (9:16) Make sure that resolution is aligned to Shorts demands (generally 10801920).
This make pro-looking entertaining Short with either text, pictures or effects overlaid!