Cloud overlap, referring to distinct cloud layers occurring over the same location, is essential for accurately calculating the atmospheric radiation transfer in numerical models, which, in turn, enhances our ability to predict future climate change. In this study, we analyze multi-year cloud overlap properties observed from the Ka-band Zenith Radar (KAZR) at the Semi-Arid Climate and Environment Observatory of Lanzhou University’s (SACOL) site. We conduct a series of statistical analyses and determine the suitable temporal-spatial resolution of 1 h with a 360 m scale for data analysis. Our findings show that the cloud overlap parameter and total cloud fraction are maximized during winter-spring and minimized in summer-autumn, and the extreme value of decorrelation length usually lags one or two seasons. Additionally, we find the cloud overlap assumption has distinct effects on the cloud fraction bias for different cloud types. The random overlap leads to the minimum bias of the cloud fraction for Low-Middle-High (LMH), Low-Middle (LM), and Middle-High (MH) clouds, while the maximum overlap is for Low (L), Middle (M), and High (H) clouds. We also incorporate observations from satellite-based active sensors, including CloudSat, Cloud-Aerosol Lidar, and Infrared Pathfinder Satellite Observations (CALIPSO), to refine our study area and specific cases by considering the total cloud fraction and sample size from different datasets. Our analysis reveals that the representativeness of random overlap strengthens and then weakens with increasing layer separations. The decorrelation length varies with the KAZR, CloudSat-CALIPSO, CloudSat, and CALIPSO datasets, measuring 1.43 km, 2.18 km, 2.58 km, and 1.11 km, respectively. For H, MH, and LMH clouds, the average cloud overlap parameter from CloudSat-CALIPSO aligns closely with KAZR. For L, M, and LM clouds, when the level separation of cloud layer pairs are less than 1 km, the representative assumption obtained from different datasets are maximum overlap.