When you click it, you can right click on the title file, go to show transition, and then choose Fade. You can hide the title by clicking the I icon and then click it again to reload it if you'd like for it to fade in. Here I'm gonna choose a png file I have saved on my computer, and here you'll see that title is now overlaid on top of my video. Remember, if you're using an overlay image, like a lower third, it has to be a png file, so it has transparency, and you can see the video behind the graphic. You can title the lower third and then browse your computer for the image file. To add your lower third or other graphic overlay, click the plus button in the sources column and then choose image. Now that your video is in the OBS application, you can begin to add lower thirds and other overlays. From here, you can choose your device, whether it's a webcam continuity camera, and here I can even just choose my webcam and hit okay. I'm gonna create new, you can name it whatever you'd like, whether it's a webcam or even a video switcher. Here in the sources column, click the plus button and then choose video capture device. Then in the OBS window, you'll need to add both your video source and your overlay files.

In this pop-up choose I will only be using the virtual camera. Once you've installed and opened the application on your computer, the first thing you're gonna do is go up to tools and then Auto Configuration Wizard.

How to add overlay in obs