Google released Android O Beta at the I/O 2017 which introduces many features.One of these is a picture-in-picture mode which currently works with YouTube. Here is how you can make them work : 
- Launch the YouTube application
- Find a video to watch and tap on it so that it is playing
- Simply select the home button and the video player should shrink down in size
- With the smaller player, you can move it around your display, play and pause the video, skip to the next video if you’re viewing a playlist, or tap on the headphones icon to have the video play in the background
- At any time, you can select the smaller player and tap on the center icon to reopen the YouTube application
- When you are done watching it, simply move the player to the bottom of the display and it will close

 
 
 
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