Transparencies are placed on top of the lens for display. The light from the lamp travels though the transparency and into the mirror where it is shone forward onto a screen for display. The mirror allows both the presenter and the audience to see the image at the same time, the presenter looking down as if writing, the audience looking forward at the screen.
A modification of the overhead projector allows it to display opaque materials by shining the light down onto the surface from above. Such opaque projectors are not as common as the traditional "overhead".
Overhead projectors were a common fixture at most schools and businesses, but today are being replaced by larger computer monitors and dedicated computer projection systems.