I am writing a short macro for youtube-dl, a command line program and I need to input a video option.
Can KBM prompt for input within the terminal without opening up a separate keyboard maestro prompt for user input?
This will help to streamline the macro
No - but you could use a regex based Typed String trigger to input data without popping open a window.
See Is it possible to call up a form field? for an example doing this.