If you want your overlay to be in the scene at the very beginning, add it with the background name like this
INT. BACKGROUND - DAY with OVERLAY NAME
You can read more on that here: https://www.dara-amarie.com/overlays-guide
Or if you just want to keep using the overlay commands, just make sure you use the & sign for those commands and they need to be at the very beginning of your scene. You will need to add “in 0” at the end of the scales, shifts, and opacity commands
INT. BACKGROUND
&overlay OL NAME create
&overlay OL NAME opacity 1 in 0
&overlay OL NAME shifts to 0 0 in zone # in 0
&overlay OL NAME scales to 1.0 1.0 in 0