Can I Create Characters of Inanimate Objects?

Taking this a step further, while a number of Character Animator's features are focused on animating faces (lip sync from audio and face tracking with the webcam) and most examples are characters, features like triggers, replays, physics, particles, and transform behaviors can actually enable doing other kinds of animations or interactive animation:

Family Feud Game in Character Animator | Motion and Graphic Design | Brian Behm Creative

Personally, I'd love to see more exploration in this area. There's a substantially broader set of uses just waiting for the right creative spark.

DT

You can also use Photoshop.

The main think to consider with creating the character is which parts you want to move.
Layers are key to having your character move as you intend when imported into Character Animator.

Yes. Character animator just stretches / replaces bits of artwork. It does not require the artwork to be human. You may need to be a bit more creative, but definitely can animate objects as well.