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I am trying to remove the background color for the caption and I see an option for "transparent" but every time I click that, the window menu closes and does nothing. I also do not see an option to change text size. Did I close something by mistake?
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You have a 708 Closed Caption stream which does not allow specifying font or font size, just color. I think this is because users set this for their playback device.
There is a bug with setting transparency for closed captions.
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Closed captions have limited styling possibilities.
Could open captions work for you?
Deep Dive: Working with Open Captions (Subtitles) | Adobe Blog
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I first attempted to use open captions but I was unable to drag the new item into my timeline, I can only drag a closed caption into the timeline. Any idea what causes this?
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You should be able to add Open Captions. Post a screen shot of the caption stream in the Caption Panel.
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Create a new sequence and try drop into the new sequence.
This will help us zone in on your prob.
Captions can be dropped onto the timeline like any other piece of footage.
Here's a checklist for you for open and closed captions.
Learn to work with captions in Premiere Pro
hth
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Fixed!
in Captions tab, bottom of tab has Import settings. Change Background opacity to 0% and the BG will not show.
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Where is this captions tab? Can you post a screenshot with it marked?
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Just double click a caption stream in your timeline. Even if the Caption Panel is closed, it will open.
Below is an image that shows one way it may appear in the Project Panel group. But it may not be open. Just use the "Window" file option at the top of the PR app and pick "Captions." It will open the panel or display it if it is already open.
Stan
 
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i hope you still here, i have found a loop around,
i have just changed the white background for green and than use special effect to remove the green color from the layer
if you need any help hit me up