A character/face code is a list of letters and numbers that determine what your character looks like.
When you finish making a decent looking character your shown a code you can share with other people.
This code could be typed in and the character you made would load up on another persons PC/console.

Mass Effect 2 did something like this and I thought it was a brilliant idea.

Do you guys think there's a chance Skyrim might use one?

i doubt it. it would be cool though.

Interesting idea. Won't be in Skyrim.

http://files.sharenator.com/memes_do_want_Memebase_70-s500x389-207113.jpg

Totally want.

Wrye Bashing faces worked, but it wasnt exactly convenient.

Before the Import Face from Wrye though, UGH! Early Oblivion was terrible in that respect.