Can anyone explain how to create an underwater breath meter so it will go down when underwater and back up when out of water, and player died if it reaches 0 underwater?

You would get better results if you broke this giant feature into a set of smaller questions and tackled them one at a time.

  • How do you detect if a character / pawn is underwater
  • How do you start/stop/reset a countdown timer
  • How do you make a custom event fire when a countdown timer reaches 0
  • How do you ‘kill’ the player character / pawn and display a game over screen?

Underwater detection
Timers