- Are real windows showing real buffers. No shortcuts, hacks, or compromises.
- Can be (re)positioned, anchored, or "external" (if supported by the UI).
- Support all features and API of normal windows, plus more.
Screenshot showing floating window with 'winblend':
https://twitter.com/Neovim/status/1145446583573594112
Yes, that screenshot shows Nvim in a terminal. The 'winblend' feature works in all UIs, including the TUI (all terminals that support RGB colors).