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WordPress · Feb 2, 2023 · c4c11d6 · c4c11d6
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diff --git a/packages/components/src/popover/README.md b/packages/components/src/popover/README.md
@@ -196,10 +196,13 @@ A callback invoked when the popover should be closed.
 
 -   Required: No
 
-### `placement`: `'top' | 'top-start' | 'top-end' | 'right' | 'right-start' | 'right-end' | 'bottom' | 'bottom-start' | 'bottom-end' | 'left' | 'left-start' | 'left-end'`
+### `placement`: `'top' | 'top-start' | 'top-end' | 'right' | 'right-start' | 'right-end' | 'bottom' | 'bottom-start' | 'bottom-end' | 'left' | 'left-start' | 'left-end' | 'overlay'`
 
 Used to specify the popover's position with respect to its anchor.
 
+`overlay` is a special case that places the popover over the reference element.
+Please note that other placement related props may not behave as excepted.
+
 -   Required: No
 -   Default: `"bottom-start"`
 

diff --git a/packages/components/src/popover/stories/index.tsx b/packages/components/src/popover/stories/index.tsx
@@ -31,6 +31,7 @@ const AVAILABLE_PLACEMENTS: PopoverProps[ 'placement' ][] = [
 	'left',
 	'left-start',
 	'left-end',
+	'overlay',
 ];
 
 const meta: ComponentMeta< typeof Popover > = {
@@ -170,7 +171,12 @@ export const AllPlacements: ComponentStory< typeof Popover > = ( {
 		</h2>
 		<div>
 			{ AVAILABLE_PLACEMENTS.map( ( p ) => (
-				<PopoverWithAnchor key={ p } placement={ p } { ...args }>
+				<PopoverWithAnchor
+					key={ p }
+					placement={ p }
+					{ ...args }
+					resize={ p === 'overlay' ? true : args.resize }
+				>
 					{ children }
 					<div>
 						<small>(placement: { p })</small>