Overly or overly means excessively; too--
He tends to be overly precise; this job will take him all day.
You may think we're being overly cautious, but the danger is real.
Overlie or overlie means to be spread over or upon, as a layer or stratum--
This granite will overlie the front steps of the building.
A layer of sediment will overlie the rocks at this time of year.
Overlay or overlay means to spread or put over, as a sheet of paper or a coating of a decorative substance--
He plans to overlay the entire piece with gold leaf.
Overlay may also mean a layer, or a transparent sheet placed over a photo or map, either blank or with additional information--
Changes in the map will be noted with an overlay.
Now that you know that, you can say--
"An overlay of marble will overlie the pedestal; we hope it won't seem overly ornate."
Note--"layover" ( one word ) means a wait between connecting flights--
We will have a two-hour layover in Chicago.
Note # 2--"lay over" ( two words ) means to be placed or spread ( lay ) on top of ( over )--
The towel should lay over the railing, so it will dry.
The towel should "lie over" the railing. Presumably someone laid it there, buy now it is lying there. It's an intransitive verb, with no object. The use of two-word "lay over, described above, is incorrect.
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