
überzogen
excessive
Exaggerated or unreasonably strong; more than necessary or appropriate.
Seine Reaktion auf den kleinen Fehler war völlig überzogen.
His reaction to the small mistake was completely excessive.
excessive / coated / overdrawn
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excessive
Exaggerated or unreasonably strong; more than necessary or appropriate.
Seine Reaktion auf den kleinen Fehler war völlig überzogen.
His reaction to the small mistake was completely excessive.

coated
Covered with a layer or coating.
Die Pralinen sind mit einer dünnen Schicht weißer Schokolade überzogen.
The chocolates are coated with a thin layer of white chocolate.

overdrawn
Describes a bank account from which more money has been withdrawn than was available as a balance. The account is in the negative.
Mein Konto ist am Ende des Monats meistens leicht überzogen.
My account is usually slightly overdrawn at the end of the month.
'Überzogen' (excessive / coated / overdrawn) is the past participle of the verb 'überziehen' (to overdraw; to coat; to exaggerate). The different meanings of the adjective derive directly from the meanings of the verb: ein Konto überziehen (to overdraw an account), etwas mit Schokolade überziehen (to coat something with chocolate), or eine Kritik überziehen (to make criticism excessive).
Er neigt dazu, seine Geschichten stark zu überziehen.
He tends to exaggerate his stories a lot.
You can recognize which meaning is intended from the noun: If it refers to a 'Konto' (account), it means 'in the negative/overdrawn'. If it refers to abstract things like 'Preise' (prices) or 'Kritik' (criticism), it means 'exaggerated/excessive'. If it is used with 'mit' (with) and a material, it means 'covered/coated'.
Die Preise in diesem Restaurant sind völlig überzogen.
The prices in this restaurant are completely excessive.
In the meaning 'übertrieben' (exaggerated/excessive), the word is often combined with abstract nouns. Common examples are: überzogene Preise (excessive prices), überzogene Forderungen (excessive demands), or eine überzogene Kritik (excessive criticism).
Seine Forderung nach einer Gehaltserhöhung um 50% war überzogen.
His demand for a 50% salary increase was excessive.
When 'überzogen' means 'bedeckt' (covered/coated), it is almost always used with the preposition 'mit' (with) and the material of the coating. The structure is: mit etwas überzogen sein (to be coated/covered with something).
Die alten Möbel waren mit einer dicken Staubschicht überzogen.
The old furniture was covered with a thick layer of dust.
This meaning is specific to the financial context and is used only in connection with 'das Konto' (the account). You can indicate the amount with the preposition 'um' (by).
Mein Konto ist am Ende des Monats oft um etwa 50 Euro überzogen.
My account is often overdrawn by about 50 euros at the end of the month.
inappropriate / excessive
Both adjectives can criticize a price or demand. “Unangemessen” means that the amount does not fit the situation or is not justified; “überzogen” emphasizes particularly strong exaggeration. A moderately excessive amount can be unangemessen, while “überzogen” usually sounds stronger.

Der Preis von 200 Euro für die kurze Fahrt war völlig überzogen.
The €200 price for the short ride was completely excessive.
Der Preis von 30 Euro für die kurze Fahrt war unangemessen.
The €30 price for the short ride was inappropriate.