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Rule 1: We can use either above or over when we say that one thing is at a higher level than another.
Example: " Above/Over the door was a sign saying, "Watch your head."
Rule 2: We prefer above when one thing is not directly over the other.
Example: "The bird hovered just a few feet over the lake."
Example: "They lived in a village in the mountains above the lake."
Rule 3:
We use over, not above, when something covers something else and touches it.
Example: "They put a quilt over the bed."
Rule 4:
We use over, not above, when we are talking about horizontal movement at a higher level than something.
Example: "I saw a helicopter fly out over the water near the fishing boat."
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