According to Osho, character is an externally organized mask—plastic, imposed, moralistic and dead—whereas individuality is a living, inner flowering that wells up spontaneously from awareness. He favors meditation over morality: awaken understanding within and behavior reorganizes by itself. Real change is not substitution of habits but dissolving their roots (anxiety, unrest) through watchfulness; then what is false drops naturally.
Character is like a costume others make you wear; individuality is the real you growing from inside when you quietly notice and understand.