No.
You used HTML to customize the description of the placemark, because Google Earth (and some other viewers) understands basic HTML for popup balloons.
Because HTML is also XML based, it's messy including HTML directly in XML (which KML is) - so CDATA is a common way of encoding it (so the text/html can pretty much be included directly in the text). But equally could encode the HTML descriptions with entities, and not use CDATA at all.
CDATA, like entities, is a part of the XML spec, defining how data is encoded. Not part of KML as such.
So your problem is you would like to include HTML in the screenoverlay - well that is not possible. Just a direct URL to a image file. To change the appearance will have to change the image file itself.
Dont remember off hand if the chart-api has options for adding borders etc.