It doesn't HAVE to be above their heads, but it's harder to ventilate at roost level because then you're introducing the risk of drafts (which can be avoided but requires a bit of planning and good knowledge of weather patterns at your exact location).
Give this a read:
https://www.backyardchickens.com/ar...-there-and-cut-more-holes-in-your-coop.47774/ - ""What if I just use a hole-saw to put a buncha 2" holes in the walls and screen them, that'll be good, right?" Unfortunately, a 2" diameter hole is about 3 square inches of total area. To put this in perspective, a square foot is
144 square inches.
You would need almost 50 holes to equal one square foot of ventilation, and a typical coop is going to need MUCH more than just one square foot of ventilation! So, no little round holes. You want actual decent-sized openings, like 6" x 4' or 1'x3' or like that, on most if not all of the walls."