Example:
https://shopee.com.my/INSUFLEX-FOAM-ROLL-IN...3339.5717065980

I want to put this above my room ceiling to reduce noise from above (especially raining). Does it work?

Yes you could, but usually people don't do that due to several reasons. First is you need considerable thickness of foam to reduce the noise from above. If it's too thin, the difference would be negligible or marginal. If too thick, it will reduce the floor height. From the link, the thickest is 1" which I guess will not make much difference. If 3" to 4", the difference will be more noticeable or significant. Secondly, it's WAF or the aesthetics once it's stuck all over the ceiling. It will look ugly in a domestic environment. And usually you have light fittings and the fan at the ceiling, and the installation around these fittings may ruin the looks of the room.