What is this and why is it on my screen and uninteractable??

[Nights]

 

[Im this guy]

That is on-screen keyboard from steam.

1. In your Steam window: View —-> Settings —-> Controller —-> Desktop Configuration.
2. Go into your Steam settings, and under “In-game” uncheck the box that says “Use the Big Picture Mode overlay when using a Steam Controller from the desktop” Then, always launch [your game] from the desktop.