Is it possible to have a speech balloon dialogue output?

[minomod]

1. Is it possible to have the text bubble printed instead of just the text as shown in the screenshot?

[Tony Li]

Yes. Add the Generic Unity UI Bark UI prefab to the character. Inspect it, and set Canvas Group > Alpha to 1 so you can see the bubble to customize its appearance. When you're done customizing, set Alpha back to zero.

To see an example, open the scene Examples / Unity UI Examples / Generic UI Example Scene, and examine Sergeant Graves.