Using the Skeletal Mesh Animation System, imported characters can run animations that have been created in external DCC software. However, using Control Rig, you can build dynamic animation rigs for characters and objects, enabling you to edit existing animations or create new animations within Unreal Engine. Using the Control Rig blueprint graph you can create dynamic rigs that can apply bone transforms to mesh skeletons. These animations can then be played in Sequencer or even baked as standalone assets that can be used in a runtime animation system.