I am trying to release a custom view that utilizes WEPopoverController as well as UIButton+Glossy but I don’t know how I should add their code to my git repository. Should I submodule it?
Here is the UIView if anyone is interested:

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Of course you could add them as submodules so it boils down to more of a personal opinion.
In my opinion submodules are overused. I would use it only to in a case where I want to break a specific project into smaller projects. So let’s say I have a large project but a specific part of it can be usefull by itself. In that case I could create a submodule so people that is only intersted in that part can fork/clone it.
In your case where you are only using it in your app the best way is probably to copy the files into your repo, not using submodules. In that case It may be a good idea to add them to a vendor folder just to make it clear that it’s part of a separate project you are using here.
Let’s say that in the future the project gets updated and breaks the API or cause other problems. You better have a static version of the file you have tested with your application than leaving it open for anyone to update the submodule to a version of those libraries that might be not supported by your application.