Working With Transparency

For transparency compatibility, ensure your Material supports and enables transparency and your texture has transparent areas. In the default lit shader, set the mode to 'Transparent' and verify that your color atlas texture incorporates transparency.

Enable Transparency In your Material

If your texture has transparency, you will be able to select colors checking its transparency

Note That the select color has some transparency

Before and After transparency

No transparency

With Transparency: Changed Colors to lower Alpha Values