I cannot seem to figure out why my scene displays like this in character animator but displays correctly in photoshop or in non-scene view.
Any ideas where I can look?
Mmm... seems odd. Did you try changing the "x" and "y" scale? Screenshot below.
If you still run into problems, try exporting your animation as a transparent PNG sequence, and then add the backdrop later in a video editor or something.
I think you have zoomed out. The bit in the middle is what will be rendered. The darkened area around is out of shot. There is a scale drop down (bottom right corner?) - set it to "fit". If you use ALT + mouse wheel it does this sort of thing. Its useful to see a character off screen, but confusing when you don't use it often.