How to implement overlay in VS Code Extension?

I have been developing the VS Code extension. I implemented the codelens and added few command actions based on content in the document.

Now, whenever user clicks on the codelens command, I would like to add a overlay as in below screenshot

The closest thing that I came across is https://github.com/microsoft/vscode-extension-samples/tree/main/code-actions-sample which is more over diagnostic but does not necessarily solve the requirement of showing overlay.

Is there any good example about how to add overlay when a codelens command or any command is invoked ?

You need to use the editor.action.peekLocations command in your CodeLens object, and also pass an additional argument called "gotoAndPeek" to it. This happens inside your provideCodeLens method).

Something like this:

    let somLens = new ImplementationLens(
       someRange,
       <Command>{
           title: "Your CodeLens Title,
           command: "editor.action.peekLocations",
            arguments: [
                window.activeTextEditor?.document.uri,
                somePositionThisPeekRefersTo,
                theListOfLocationsToBePeeked,
                "gotoAndPeek"
            ]

Hope this helps