Character is the network of habits that permeate all the intentional acts of an individual.
I am not using the word habit in the way we often do, as a technical ability existing apart from our wishes. These habits are an intimate and fundamental part of our selves. They are representations of our will. They rule our will, working in a coordinated way they dominate our way of acting. These habits are the results of repeated, intelligently controlled, actions.
Habits also control the formation of ideas as well as physical actions. We cannot perform a correct action or a correct idea without having already formed correct habits. "Reason pure of all influence from prior habit is a fiction." "The medium of habit filters all material that reaches our perception and thought." "Immediate, seemingly instinctive, feeling of the direction and end of various lines of behavior is in reality the feeling of habits working below direct consciousness." "Habit means special sensitiveness or accessibility to certain classes of stimuli, standing predilections and aversions, rather than bare recurrence of specific acts. It means will."
"Were it not for the continued operation of all habits in every act, no such thing as character would exist. There would be simply a bundle, an untied bundle at that, of isolated acts. Character is the interpenetrating of habits. If each habit in an insulated compartment and operated without affecting or being affected by others, character would not exist. That is conduct would lack unity being only juxtaposition of disconnected reactions to separated situations. But since environments overlap, since situations are continuous and those remote from one another contain like elements, a continuous modification of habits by one another is constantly going on."
My understanding of character and the quotations concerning the nature of character are taken from "Habits and Will" by John Dewey
http://www.alexandercenter.com/jd/johndeweyhabits.html.