Try this It may helps you,
getWindow().addFlags(WindowManager.LayoutParams.FLAG_TURN_SCREEN_ON);
getWindow().addFlags(WindowManager.LayoutParams.FLAG_SHOW_WHEN_LOCKED);
getWindow().addFlags(WindowManager.LayoutParams.FLAG_KEEP_SCREEN_ON);
setContentView(R.layout.alertdialog);
And also, Android is a little bit of a contradiction. It's very open and as a developer you have access to anything, and it's up to you to use those powers for good or evil. When I say evil I don't mean malware. I mean apps that try to get cute and use things in ways they weren't meant to be used, like putting up notifications asking you to use the app more. The contradiction is that you don't actually have access to everything, there are a few parts the developers decided were so important that app couldn't mess with them. The lock screen is one of those parts. You can replace your home app all you want, but you never have to worry about your replacement lock screen failing and preventing you from accessing your phone.
Even if this were possible you would have more problems to deal with. Every lock screen is different, manufacturers can and do customize it so you have no guarantees your activity won't get in the way of unlocking the phone.
For touching outside of your dialog,
dialog.setCanceledOnTouchOutside(your boolean);