diff --git a/goldens/cdk/overlay/index.api.md b/goldens/cdk/overlay/index.api.md
index f3d7a5f9ff45..bfca45f81adf 100644
--- a/goldens/cdk/overlay/index.api.md
+++ b/goldens/cdk/overlay/index.api.md
@@ -77,8 +77,6 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
     // (undocumented)
     static ngAcceptInputType_push: unknown;
     // (undocumented)
-    static ngAcceptInputType_usePopover: unknown;
-    // (undocumented)
     ngOnChanges(changes: SimpleChanges): void;
     // (undocumented)
     ngOnDestroy(): void;
@@ -98,7 +96,7 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
     push: boolean;
     scrollStrategy: ScrollStrategy;
     transformOriginSelector: string;
-    usePopover: boolean;
+    usePopover: FlexibleOverlayPopoverLocation | null;
     viewportMargin: ViewportMargin;
     width: number | string;
     // (undocumented)
@@ -150,7 +148,7 @@ export interface CdkConnectedOverlayConfig {
     // (undocumented)
     transformOriginSelector?: string;
     // (undocumented)
-    usePopover?: boolean;
+    usePopover?: FlexibleOverlayPopoverLocation | null;
     // (undocumented)
     viewportMargin?: ViewportMargin;
     // (undocumented)
@@ -267,7 +265,7 @@ export function createCloseScrollStrategy(injector: Injector, config?: CloseScro
 export function createFlexibleConnectedPositionStrategy(injector: Injector, origin: FlexibleConnectedPositionStrategyOrigin): FlexibleConnectedPositionStrategy;
 
 // @public
-export function createGlobalPositionStrategy(injector: Injector): GlobalPositionStrategy;
+export function createGlobalPositionStrategy(_injector: Injector): GlobalPositionStrategy;
 
 // @public
 export function createNoopScrollStrategy(): NoopScrollStrategy;
@@ -286,7 +284,7 @@ export class FlexibleConnectedPositionStrategy implements PositionStrategy {
     // (undocumented)
     detach(): void;
     dispose(): void;
-    getPopoverInsertionPoint(): Element;
+    getPopoverInsertionPoint(): Element | null;
     _origin: FlexibleConnectedPositionStrategyOrigin;
     positionChanges: Observable<ConnectedOverlayPositionChange>;
     get positions(): ConnectionPositionPair[];
@@ -298,6 +296,7 @@ export class FlexibleConnectedPositionStrategy implements PositionStrategy {
     withFlexibleDimensions(flexibleDimensions?: boolean): this;
     withGrowAfterOpen(growAfterOpen?: boolean): this;
     withLockedPosition(isLocked?: boolean): this;
+    withPopoverLocation(location: FlexibleOverlayPopoverLocation): this;
     withPositions(positions: ConnectedPosition[]): this;
     withPush(canPush?: boolean): this;
     withScrollableContainers(scrollables: CdkScrollable[]): this;
@@ -311,6 +310,9 @@ export type FlexibleConnectedPositionStrategyOrigin = ElementRef | Element | (Po
     height?: number;
 });
 
+// @public
+export type FlexibleOverlayPopoverLocation = 'global' | 'inline';
+
 // @public
 export class FullscreenOverlayContainer extends OverlayContainer implements OnDestroy {
     constructor(...args: unknown[]);
@@ -327,7 +329,6 @@ export class FullscreenOverlayContainer extends OverlayContainer implements OnDe
 
 // @public
 export class GlobalPositionStrategy implements PositionStrategy {
-    constructor(injector?: Injector);
     apply(): void;
     // (undocumented)
     attach(overlayRef: OverlayRef): void;
@@ -336,7 +337,6 @@ export class GlobalPositionStrategy implements PositionStrategy {
     centerVertically(offset?: string): this;
     dispose(): void;
     end(value?: string): this;
-    getPopoverInsertionPoint(): Element;
     // @deprecated
     height(value?: string): this;
     left(value?: string): this;
@@ -525,7 +525,7 @@ export interface PositionStrategy {
     attach(overlayRef: OverlayRef): void;
     detach?(): void;
     dispose(): void;
-    getPopoverInsertionPoint?(): Element;
+    getPopoverInsertionPoint?(): Element | null;
 }
 
 // @public
diff --git a/src/cdk/overlay/_index.scss b/src/cdk/overlay/_index.scss
index 50c929a0665d..714cf2979858 100644
--- a/src/cdk/overlay/_index.scss
+++ b/src/cdk/overlay/_index.scss
@@ -190,11 +190,13 @@ $backdrop-animation-timing-function: cubic-bezier(0.25, 0.8, 0.25, 1) !default;
     background: none;
     border: none;
     padding: 0;
-    color: inherit;
     outline: 0;
     overflow: visible;
     position: fixed;
     pointer-events: none;
+    white-space: normal;
+    line-height: normal;
+    text-decoration: none;
 
     // These are important so the overlay can be measured before it's fully inserted.
     width: 100%;
diff --git a/src/cdk/overlay/overlay-directives.ts b/src/cdk/overlay/overlay-directives.ts
index 83ccf2a008c9..15bb05889834 100644
--- a/src/cdk/overlay/overlay-directives.ts
+++ b/src/cdk/overlay/overlay-directives.ts
@@ -38,6 +38,7 @@ import {
   createFlexibleConnectedPositionStrategy,
   FlexibleConnectedPositionStrategy,
   FlexibleConnectedPositionStrategyOrigin,
+  FlexibleOverlayPopoverLocation,
 } from './position/flexible-connected-position-strategy';
 import {createRepositionScrollStrategy, ScrollStrategy} from './scroll/index';
 
@@ -127,7 +128,7 @@ export interface CdkConnectedOverlayConfig {
   growAfterOpen?: boolean;
   push?: boolean;
   disposeOnNavigation?: boolean;
-  usePopover?: boolean;
+  usePopover?: FlexibleOverlayPopoverLocation | null;
   matchWidth?: boolean;
 }
 
@@ -251,8 +252,8 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
   disposeOnNavigation: boolean = false;
 
   /** Whether the connected overlay should be rendered inside a popover element or the overlay container. */
-  @Input({alias: 'cdkConnectedOverlayUsePopover', transform: booleanAttribute})
-  usePopover: boolean = false;
+  @Input({alias: 'cdkConnectedOverlayUsePopover'})
+  usePopover: FlexibleOverlayPopoverLocation | null = null;
 
   /** Whether the overlay should match the trigger's width. */
   @Input({alias: 'cdkConnectedOverlayMatchWidth', transform: booleanAttribute})
@@ -377,7 +378,7 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
       scrollStrategy: this.scrollStrategy,
       hasBackdrop: this.hasBackdrop,
       disposeOnNavigation: this.disposeOnNavigation,
-      usePopover: this.usePopover,
+      usePopover: !!this.usePopover,
     });
 
     if (this.height || this.height === 0) {
@@ -423,7 +424,8 @@ export class CdkConnectedOverlay implements OnDestroy, OnChanges {
       .withGrowAfterOpen(this.growAfterOpen)
       .withViewportMargin(this.viewportMargin)
       .withLockedPosition(this.lockPosition)
-      .withTransformOriginOn(this.transformOriginSelector);
+      .withTransformOriginOn(this.transformOriginSelector)
+      .withPopoverLocation(this.usePopover === 'global' ? 'global' : 'inline');
   }
 
   /** Returns the position strategy of the overlay to be set on the overlay config */
diff --git a/src/cdk/overlay/overlay-ref.ts b/src/cdk/overlay/overlay-ref.ts
index c78012a5c9c8..5d4792606890 100644
--- a/src/cdk/overlay/overlay-ref.ts
+++ b/src/cdk/overlay/overlay-ref.ts
@@ -405,8 +405,12 @@ export class OverlayRef implements PortalOutlet {
 
   private _attachHost() {
     if (!this._host.parentElement) {
-      if (this._config.usePopover && this._positionStrategy?.getPopoverInsertionPoint) {
-        this._positionStrategy.getPopoverInsertionPoint().after(this._host);
+      const customInsertionPoint = this._config.usePopover
+        ? this._positionStrategy?.getPopoverInsertionPoint?.()
+        : null;
+
+      if (customInsertionPoint) {
+        customInsertionPoint.after(this._host);
       } else {
         this._previousHostParent?.appendChild(this._host);
       }
diff --git a/src/cdk/overlay/overlay.ts b/src/cdk/overlay/overlay.ts
index 1e3f059a0ddd..6b739a0a57a4 100644
--- a/src/cdk/overlay/overlay.ts
+++ b/src/cdk/overlay/overlay.ts
@@ -67,8 +67,12 @@ export function createOverlayRef(injector: Injector, config?: OverlayConfig): Ov
     host.classList.add('cdk-overlay-popover');
   }
 
-  if (overlayConfig.usePopover && overlayConfig.positionStrategy?.getPopoverInsertionPoint) {
-    overlayConfig.positionStrategy.getPopoverInsertionPoint().after(host);
+  const customInsertionPoint = overlayConfig.usePopover
+    ? overlayConfig.positionStrategy?.getPopoverInsertionPoint?.()
+    : null;
+
+  if (customInsertionPoint) {
+    customInsertionPoint.after(host);
   } else {
     overlayContainer.getContainerElement().appendChild(host);
   }
diff --git a/src/cdk/overlay/position/flexible-connected-position-strategy.spec.ts b/src/cdk/overlay/position/flexible-connected-position-strategy.spec.ts
index bfb472aff4d6..4a49f6b30f2b 100644
--- a/src/cdk/overlay/position/flexible-connected-position-strategy.spec.ts
+++ b/src/cdk/overlay/position/flexible-connected-position-strategy.spec.ts
@@ -2964,17 +2964,16 @@ describe('FlexibleConnectedPositionStrategy', () => {
       originElement = createPositionedBlockElement();
       document.body.appendChild(originElement);
 
-      positionStrategy = createFlexibleConnectedPositionStrategy(
-        injector,
-        originElement,
-      ).withPositions([
-        {
-          overlayX: 'start',
-          overlayY: 'top',
-          originX: 'start',
-          originY: 'bottom',
-        },
-      ]);
+      positionStrategy = createFlexibleConnectedPositionStrategy(injector, originElement)
+        .withPopoverLocation('inline')
+        .withPositions([
+          {
+            overlayX: 'start',
+            overlayY: 'top',
+            originX: 'start',
+            originY: 'bottom',
+          },
+        ]);
     });
 
     afterEach(() => {
diff --git a/src/cdk/overlay/position/flexible-connected-position-strategy.ts b/src/cdk/overlay/position/flexible-connected-position-strategy.ts
index 7816b5f0c86b..8381a415d568 100644
--- a/src/cdk/overlay/position/flexible-connected-position-strategy.ts
+++ b/src/cdk/overlay/position/flexible-connected-position-strategy.ts
@@ -63,6 +63,9 @@ export function createFlexibleConnectedPositionStrategy(
   );
 }
 
+/** Supported locations in the DOM for connected overlays. */
+export type FlexibleOverlayPopoverLocation = 'global' | 'inline';
+
 /**
  * A strategy for positioning overlays. Using this strategy, an overlay is given an
  * implicit position relative some origin element. The relative position is defined in terms of
@@ -158,6 +161,9 @@ export class FlexibleConnectedPositionStrategy implements PositionStrategy {
   /** Amount by which the overlay was pushed in each axis during the last time it was positioned. */
   private _previousPushAmount: {x: number; y: number} | null;
 
+  /** Configures where in the DOM to insert the overlay when popovers are enabled. */
+  private _popoverLocation: FlexibleOverlayPopoverLocation = 'global';
+
   /** Observable sequence of position changes. */
   positionChanges: Observable<ConnectedOverlayPositionChange> = this._positionChanges;
 
@@ -511,8 +517,24 @@ export class FlexibleConnectedPositionStrategy implements PositionStrategy {
     return this;
   }
 
+  /**
+   * Determines where in the DOM the overlay will be rendered when popover mode is enabled.
+   * @param location Configures the location in the DOM. Supports the following values:
+   *  - `global` - The default which inserts the overlay inside the overlay container.
+   *  - `inline` - Inserts the overlay next to the trigger.
+   */
+  withPopoverLocation(location: FlexibleOverlayPopoverLocation): this {
+    this._popoverLocation = location;
+    return this;
+  }
+
   /** @docs-private */
-  getPopoverInsertionPoint(): Element {
+  getPopoverInsertionPoint(): Element | null {
+    // Return null so it falls back to inserting into the overlay container.
+    if (this._popoverLocation === 'global') {
+      return null;
+    }
+
     const origin = this._origin;
 
     if (origin instanceof ElementRef) {
diff --git a/src/cdk/overlay/position/global-position-strategy.spec.ts b/src/cdk/overlay/position/global-position-strategy.spec.ts
index 550b12c271f5..9d83675b063f 100644
--- a/src/cdk/overlay/position/global-position-strategy.spec.ts
+++ b/src/cdk/overlay/position/global-position-strategy.spec.ts
@@ -7,8 +7,6 @@ import {
   OverlayRef,
   createOverlayRef,
   createGlobalPositionStrategy,
-  GlobalPositionStrategy,
-  OverlayContainer,
 } from '../index';
 
 describe('GlobalPositonStrategy', () => {
@@ -472,50 +470,6 @@ describe('GlobalPositonStrategy', () => {
     expect(elementStyle.marginRight).toBe('');
     expect(parentStyle.justifyContent).toBe('flex-end');
   });
-
-  describe('DOM location', () => {
-    let positionStrategy: GlobalPositionStrategy;
-    let containerElement: HTMLElement;
-
-    beforeEach(() => {
-      containerElement = TestBed.inject(OverlayContainer).getContainerElement();
-      positionStrategy = createGlobalPositionStrategy(injector);
-    });
-
-    it('should place the overlay inside the overlay container by default', () => {
-      attachOverlay({positionStrategy, usePopover: false});
-      expect(containerElement.contains(overlayRef.hostElement)).toBe(true);
-      expect(overlayRef.hostElement.getAttribute('popover')).toBeFalsy();
-    });
-
-    it('should be able to opt into placing the overlay inside a popover element', () => {
-      if (!('showPopover' in document.body)) {
-        return;
-      }
-
-      attachOverlay({positionStrategy, usePopover: true});
-
-      expect(containerElement.contains(overlayRef.hostElement)).toBe(false);
-      expect(document.body.lastChild).toBe(overlayRef.hostElement);
-      expect(overlayRef.hostElement.getAttribute('popover')).toBe('manual');
-    });
-
-    it('should re-attach the popover at the end of the body', () => {
-      if (!('showPopover' in document.body)) {
-        return;
-      }
-
-      attachOverlay({positionStrategy, usePopover: true});
-      expect(document.body.lastChild).toBe(overlayRef.hostElement);
-
-      overlayRef.detach();
-      TestBed.inject(ApplicationRef).tick();
-      expect(overlayRef.hostElement.parentNode).toBeFalsy();
-
-      overlayRef.attach(portal);
-      expect(document.body.lastChild).toBe(overlayRef.hostElement);
-    });
-  });
 });
 
 @Component({
diff --git a/src/cdk/overlay/position/global-position-strategy.ts b/src/cdk/overlay/position/global-position-strategy.ts
index a29af9b31651..2c0f11dabcc4 100644
--- a/src/cdk/overlay/position/global-position-strategy.ts
+++ b/src/cdk/overlay/position/global-position-strategy.ts
@@ -6,7 +6,7 @@
  * found in the LICENSE file at https://angular.dev/license
  */
 
-import {DOCUMENT, Injector} from '@angular/core';
+import {Injector} from '@angular/core';
 import {OverlayRef} from '../overlay-ref';
 import {PositionStrategy} from './position-strategy';
 
@@ -17,8 +17,8 @@ const wrapperClass = 'cdk-global-overlay-wrapper';
  * Creates a global position strategy.
  * @param injector Injector used to resolve dependencies for the strategy.
  */
-export function createGlobalPositionStrategy(injector: Injector): GlobalPositionStrategy {
-  return new GlobalPositionStrategy(injector);
+export function createGlobalPositionStrategy(_injector: Injector): GlobalPositionStrategy {
+  return new GlobalPositionStrategy();
 }
 
 /**
@@ -39,13 +39,6 @@ export class GlobalPositionStrategy implements PositionStrategy {
   private _width = '';
   private _height = '';
   private _isDisposed = false;
-  private _document: Document;
-
-  constructor(injector?: Injector) {
-    // TODO(crisbeto): injector should be required, but some internal apps
-    // don't go through `createGlobalPositionStrategy` so they don't provide it.
-    this._document = injector?.get(DOCUMENT) || document;
-  }
 
   attach(overlayRef: OverlayRef): void {
     const config = overlayRef.getConfig();
@@ -274,9 +267,4 @@ export class GlobalPositionStrategy implements PositionStrategy {
     this._overlayRef = null!;
     this._isDisposed = true;
   }
-
-  /** @docs-private */
-  getPopoverInsertionPoint(): Element {
-    return this._document.body.lastChild as Element;
-  }
 }
diff --git a/src/cdk/overlay/position/position-strategy.ts b/src/cdk/overlay/position/position-strategy.ts
index de0e96626502..1191acb2dc0e 100644
--- a/src/cdk/overlay/position/position-strategy.ts
+++ b/src/cdk/overlay/position/position-strategy.ts
@@ -26,5 +26,5 @@ export interface PositionStrategy {
    * Gets the element in the DOM after which to insert
    * the overlay when it is rendered out as a popover.
    */
-  getPopoverInsertionPoint?(): Element;
+  getPopoverInsertionPoint?(): Element | null;
 }
diff --git a/src/cdk/overlay/public-api.ts b/src/cdk/overlay/public-api.ts
index b76ed82361ae..729dee69c465 100644
--- a/src/cdk/overlay/public-api.ts
+++ b/src/cdk/overlay/public-api.ts
@@ -32,6 +32,7 @@ export {
   createGlobalPositionStrategy,
 } from './position/global-position-strategy';
 export {
+  FlexibleOverlayPopoverLocation,
   ConnectedPosition,
   FlexibleConnectedPositionStrategy,
   FlexibleConnectedPositionStrategyOrigin,
diff --git a/src/material/tooltip/tooltip.ts b/src/material/tooltip/tooltip.ts
index 7245a9bd7abf..a3c6f63751f0 100644
--- a/src/material/tooltip/tooltip.ts
+++ b/src/material/tooltip/tooltip.ts
@@ -508,7 +508,8 @@ export class MatTooltip implements OnDestroy, AfterViewInit {
       .withTransformOriginOn(`.${this._cssClassPrefix}-tooltip`)
       .withFlexibleDimensions(false)
       .withViewportMargin(this._viewportMargin)
-      .withScrollableContainers(scrollableAncestors);
+      .withScrollableContainers(scrollableAncestors)
+      .withPopoverLocation('global');
 
     strategy.positionChanges.pipe(takeUntil(this._destroyed)).subscribe(change => {
       this._updateCurrentPositionClass(change.connectionPair);
@@ -528,6 +529,7 @@ export class MatTooltip implements OnDestroy, AfterViewInit {
       panelClass: this._overlayPanelClass ? [...this._overlayPanelClass, panelClass] : panelClass,
       scrollStrategy: this._injector.get(MAT_TOOLTIP_SCROLL_STRATEGY)(),
       disableAnimations: this._animationsDisabled,
+      usePopover: true,
     });
 
     this._updatePosition(this._overlayRef);