Overlay and screen recording techniques are described that enables separate recordings of a screen and one or more overlays that were displayed on the screen during recording. In one example, pixel values of an overlay are blended with pixel values of a screen to paint the overlay onto the screen in a transparent manner that is imperceptible to the human eye but allows for original screen pixel values to be recovered from areas of the screen that were visually occluded by the overlay. This enables a user to display recording controls and visual cues on their screen without having to worry about the overlay visually occluding any screen content during the recording. One or both of the separately recorded screen and overlay streams can then be output for playback to enable viewing of the individual streams without loss in quality or content of the individual streams.