A ball valve in a drain line is NOT advised!! You CANNOT control the drainflow with a valve. Worse, if you would close the valve the tank still overflows but this time not through the drain but on your floor! It is like going from two overflow boxes to one while not adjusting the amount of water that is being pumped into the main tank.
I find it highly bizarre that your sump water level RISES when you got the "thing" going. In a proper setup, the sump water level only rises when you shut the "thing" off. You need a proper size sump to be able to handle all the water that is drained (but not pumped back). What size you need? See Broomer's post, it is as clear as you could wish for. Having siad this, a 10 gl sump can be used. However, you are largely restricted by the amount/volume of water it can keep when power failures occur. So, with a 10 gl sump, you need to subtract the volume of the equipment in the sump (pump, heater, filter?), subtract the watervolume that "hangs" in your drain line (Broomer! you would be THE man if you can calculate that as well!), what is left is the water volume you can have in your main tank at a HIGHER level than the inlet of your drainline. Broomer calculated this but in reality you "play" with in the inflow. Meaning, you adjust the amount of water that the return pump sends back from the sump to the main tank. Some pumps have a built-in ball valve to do so. I prefer a T on the return line, with a ball valve on the line back to the sump. In any case, a 10 gl sump does not provide a lot of water flow for tanks > 70 gl.
So, starting from a steady-state situation in your case, I can only imagine sump water level to rise, after turning on the power, if -indeed- the pump was not installed properly. I really see no other explanation.