There is a limited form of character customization within the game in the form of skin colours.
When entering the server, you are introduced to a a small menu with playable creatures. This also includes the DLCs that you may or may not already own. Under the creature's basic information, there are a three set of arrows that allow you to customize your character. The character's skin is one of them.
There are two default options that you can choose from: the iconic skin, also known as the default skin, or a random skin. (Note that Kickstarter backers and Patreon supporters have more options available from the beginning of the game.) There are ways to unlock new skins such as quests, in-game tasks, and skin crafting (made via nesting). The easiest way to obtain a specific skin is through becoming the children of other nesting players who can produce that skin.
There are currently four different types of skins; common skins, rare skins, exclusive skins and exotic skins.
Common skins have colours and patterns typical to a species. For example, the Ice Wyvern's coloration mostly consists of blues and whites. Common skins can be obtained through selecting a random skin or via breeding.
Rare skins are more uncommon skins that break away from the typical colour palette of a species and may also have different patterns or markings. One example of a rare skin is the Shadow Scale skin Forest Moon. Shadow Scales typically have blue or black scales to camouflage against the sky, but Forest Moon is a brown skin with green edges. Rare skins can be obtained through selecting a random skin or via breeding.
Exclusive skins consist of Kickstarter backer skins: white, gray, and black, and the Patreon supporter skin, which is red. Exclusive skins can obtained via either spawning in as that skin (if you own it), or being bred in as the child of a parent who has that skin. The melanistic (black) Only Kickstarter backers can apply the shimmer effect on these skins.
Exotic skins, or craftable skins, are only obtainable via nesting by combining various common, rare, and exclusive skins. An example is the overo skin. Below there are some examples of each skin type in the game:
Old Placeholder Skins
In the early tech demo and alpha versions of the game, the dragons used to have a decent variety of different coloured skins. While these skins lacked marking patterns, they were widely enjoyed by the community. The older skins had a bit more versatile rarity system, and a majority of the skins were quite easily obtainable through continuous respawning. The old Inferno Ravager's placeholder also had randomized horn design feature, which the horns were completely randomized and dependent on the player's gender; female wyverns had short horns while the males had long and much more decorative horns. However, this horn changing feature has not been continued in the new custom models of the dragons.