This question above is typically asked by customers who have experience with the YouTube embedded player. It's also related to the following questions:
It is not legal to embed YouTube videos inside any video player, and overlay any custom UI elements. You can not use the YouTube embedded player inside THEOplayer.
Source: https://developers.google.com/youtube/terms/required-minimum-functionality:
You must not display overlays, frames, or other visual elements in front of any part of a YouTube embedded player, including player controls. Similarly, you must not use overlays, frames or other visual elements to obscure any part of an embedded player, including player controls.
Links: