The answer is yes. You can absolutely use Blender to make characters (and more) for Unreal Engine.
It seems the questioner will try something else, but I think it’s important for future users who will see this question that they know Blender is a good (and free) tool to use with UE. Sure, there will be quirks, but that’s not unlike any other application. Fact is that many use Blender in conjunction with UE.
There are multiple guides and tutorials around (google) that gives you the specifics you need to do the export and import properly. If you had a specific question or issue, I would answer it here, but your question is general in nature.
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