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Spatial data overlay in Geographic Information Systems (GIS) examines the relationships between different data sets by layering them on top of each other. This process allows GIS analysts to visualize how various spatial features interact, compare attributes, and discern patterns across different data layers. For instance, if you have one layer representing land use and another representing population density, overlaying these layers can reveal insights into how population concentrations overlap with different types of land usage.

Understanding the relationships between data sets is critical in applications like urban planning, environmental assessments, and resource management. By analyzing these relationships, decision-makers can derive actionable insights that inform spatially-based strategies and policies. This capability sets spatial data overlay apart as a fundamental analytical tool in GIS.