Since I already wrote an article on having Docker running with OverlayFS on Ubuntu 14.04, I won't go over all of it again. Here is a not so quick link on why it's cool to have it. Basically it's faster, harder, better, stronger, and scales better.
The only note is that since Ubuntu comes with v4 Kernels, there is no need to install any more packages except docker itself. The commands below must be ran as root.
TL;DR Docker With OverlayFS on Ubuntu 16.04:
The first step just installs docker, straight from docker.com.
Awesome. The problem now is that it runs with the aufs driver, so we need to stop docker.
The next step is to create a copy of the current configuration file from the system itself. We will override the configuration from the system by copying it as /etc/systemd/system/docker.service .
Now, we change the ExecStart line by appending the OverlayFS setting:
We now tell systemd that the configuration files have updated, and start docker again: