I have a div and after I click a button, I would like the div to appear (which I can do), but I would like the whole background to become darker too (this is inline with overlay
You'd want a 'modal' dialog. It's basically accomplished by using an underlying div and a background set.
jQuery UI supports it here: http://jqueryui.com/demos/dialog/#modal , but you can see how they do it by inspecting.