Breaking the $\frac{1}{2}$-barrier for the twisted second moment of Dirichlet $L$-functions

We study the second moment of Dirichlet $L$-functions to a large prime modulus $q$ twisted by the square of an arbitrary Dirichlet polynomial. We break the $\frac{1}{2}$-barrier in this problem, and obtain an asymptotic formula provided that the length of the Dirichlet polynomial is less than $q^{51/101} = q^{1/2 +1/202}$. As an application, we obtain an upper bound of the correct order of magnitude for the third moment of Dirichlet $L$-functions. We give further results when the coefficients of the Dirichlet polynomial are more specialized.