What @JosephSilber said, or pass the $event object into ng-click
callback and stop the propagation inside of it:
<div ng-controller="OverlayCtrl" class="overlay" ng-click="hideOverlay()">
<img src="http://some_src" ng-click="nextImage($event)"/>
</div>
$scope.nextImage = function($event) {
$event.stopPropagation();
// Some code to find and display the next image
}