it’s possible to do it using viewports, can’t remember how to do it exactly tho…
there’s a demo for it in the asset library, but it’s for godot 3.5, but mabe it helps: https://godotengine.org/asset-library/asset/127
Yeah add a sprite and a subviewport. Then add some 2d Elements like a label as a child of the subviewport. Set the viewport render mode to “Update Always” and then set the 3D sprite texture as a viewport texture. Make the viewport texture point towards the subviewport.
Keep in mind its kinda laggy so make sure to have this auto turn off if ur character looks away.