According to Lennart Sas, director and Overlord lead at Triumph Studios, Overlord II will "massively increases the scope of the original concept". As with Overlord: Dark Legend, an upcoming Overlord-title for Nintendo Wii, Overlord II will feature a new Overlord, who was hinted at in the final scenes of the expansion pack Overlord: Raising Hell, about whom nothing has been revealed yet. The game itself is set to be in a more realistic world, as opposed to the fantasy world of the first game, allowing politics, environmental issues and similar real-world problems to be parodied within the game. The enemy will be a Roman-inspired empire which has plans to root out all magic and take over the world.
The environment is designed to allow more diversity. A icy world called "Nordberg" (which translates to German as "North Mountain"), a Magic Sanctuary Domain and the cities of the enemy empire are cited as new locations so far.
The gameplay of the first game (which consisted of controlling the Overlord who in turn sent his minions to do most of the work) has been retained for this sequel, but, according to Sas, it has been greatly expanded. The smartness and destructiveness of the minions have been improved and the new AI is able to do more things than before, such as "riding mounts, using war machines and sailing warships". Sas also says that controls and visuals have been improved to make the game more attractive to a broader audience. It has been said in a Eurogamer interview that minions can be named, so the player feels more attached to it. If a minion you are fond of dies, he can be resurrected at a Minion Graveyard.