The show's producers told the Coronation Street star as he woke on Thursday morning that Dean, 50, had died of a heart attack.
An ITV spokesperson said: "Craig decided to leave the Celebrity camp... and will be heading back to his family in the UK.
We send our sincere condolences to Craig and his family."
Charles was missing from last night's show when presenters Ant and Dec entered the campsite.
The pair told viewers that they could not vote for Charles when deciding which celebrity should take part in the next bushtucker trial.
The  6 Music radio presenter and former Red Dwarf star had been in the jungle for less than a week. He was one of the favourites to win.
The 49-year-old is the second celebrity to leave, following reality TV star Gemma Collins's exit.
Westlife singer Kian Egan, who won the jungle crown in 2013, has tweeted his condolences.
Craig - a DJ at BBC Radio 6 Music - had said his rocky past had prepared him for the jungle.
He admitted he went to hell and back over his crack cocaine addiction in 2006.
He finally beat the habit after a stint in rehab, but said recently that heights, snakes, rats and spiders won't prove to be as challenging as getting clean.
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Craig Charles has left the I'm A Celebrity jungle after the sudden death of his older brother.