DragAndDrop

HTML

<script src="//cdnjs.cloudflare.com/ajax/libs/knockout/2.3.0/knockout-min.js"></script>
<textarea data-bind="value: textContent" Placeholder="Type text to append"></textarea>
<button data-bind="click: addNew">Generate New Div</button>

<div class="container">
<div data-bind="foreach:items" class="fix_backround">
    <div href="#" class="item" data-bind="draggable:true,droppable:true">
        <span data-bind="click:$parent.remove">[x]</span><br/><br/>
        <center><span class="text" data-bind="text:$data"></span><input class="edit_text"/></center>
    </div>
</div>
</div>

CSS

.item{
    width: 200px;
    height: 200px;
    padding: 0.5em;
    background:#ffff99;
    z-index: 1;
    display:block;
}

.edit_text
{
    display: none;
}

.fix_backround
{
    background-color: transparent;
}

.container {
    width: 500px;
    height: 500px;
    border: 2px solid;
    position: relative;
    overflow: auto;
}

JavaScript

var z = 1; //value to make div overlappable

$('#addText').click(function (e) {
    /** Make div draggable **/
    $('<div />', {
        class: 'ui-widget-content',
        appendTo: '.container',
        draggable: {
            containment: 'parent',
            start: function( event, ui ) {
                $(this).css('z-index', ++z);
            }
        }
    });
});


$(document).on("dblclick", '.text', function()
{
    $(this).hide();    $(this).closest('.item').find('.edit_text').val($(this).text()).show();
});

$(document).on("click", ".edit_text", function()
{
    return false;
});


$(document).on("click", function()
{
    var editingText = $('.edit_text:visible');
    if (editingText.length)
    {
        editingText.hide();
        editingText.closest('.item').find('.text').text($(editingText).val()).show();
    }
});

ko.bindingHandlers.draggable={
    init: function(element, valueAccessor, allBindingsAccessor, viewModel) {
        $(element).draggable();
    }
};

var vm=function(){
    var self=this;
    self.items=ko.observableArray();
    self.textContent = ko.observable('');
    self.init=function(){
        self.items([]);
    }
    self.remove=function(item){
        console.log(item);
        self.items.remove(item);
    }
    self.addNew = function() {
      self.items.push( self.textContent() );
      self.textContent('');
    }
    self.init();
}

ko.applyBindings(new vm());