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Android has always supported copying text, even back when that was unusual on mobile devices. However, there are still lots of places in the OS that text isn't accessible. There are a few apps that let you grab that text, but Microsoft's Clip Layer seems to be the best at it. There is, however, a drawback. You'll lose Google Now on Tap. Okay, admittedly that's a pretty minor drawback.
Clip Layer is bound to the long-press home button shortcut—it takes over the Assist command in the system settings. On most phones, that's still Google Now on Tap. The lone exception being the Pixel phones. On those devices, the long-press action launches Assistant. Assistant is useful, so I don't know that I'd recommend using Clip Layer on the Pixel. Everyone else is only losing access to Now on Tap (AKA screen search), which Google has effectively abandoned.
Your screen is overlaid with a grid showing all detected text when you long-press to launch Clip Layer. To select text, just tap the boxes. These can be app icon labels, contents from widgets, or just text in an app that doesn't expose it for selection. Then, tap the floating text icon in the upper right corner to see all the text you've selected.
Like other apps, Clip Layer can only grab an entire block of text at a time. However, you can edit a bit in the text popup. You can long-press here to select and copy just a part of the text you've pulled out of the screen.
At the bottom of the screen in Clip Layer mode are several action buttons including copy, task, email, and share. The copy button is self-explanatory. Task plugs into Wunderlist to turn the text into a to-do (you have to log into Wunderlist first). Email drops the text into a new email, and share simply opens the system sharing menu so you can send the text anyplace else.
Clip Layer is free, and it's a good solution if you often find yourself needing to copy text from odd places. Losing the long-press shortcut is a minor drawback right now for most phones. If Assistant comes to more devices in the future, you may be less keen on it, though.