It has some capability to turn you skeletal mesh into a new or child blueprint in which you can modify the "Actors" looks to some degree. However it is probably best to use a program like Blender/3DMax to import a blank Skeletal Mesh with (X number of "Bone") or one you found either on the marketplace or around the web.
This will off you better materal, texture, normalization and tessellation when creating your 3D model....
Take my words with a grain of salt though, I work mostly with blueprints right now for my own personal project (scripting out new events for actors) but from what i've saw if you want the free route and you actually want to design your own artwork you should be working 3DMax;Blender=UE4 import
Anything that can export a fbx file. Maya , 3ds max , blender , zbrush, bla bla bla bla. Recommended is maya not only for it's game dev nature but also due to ART tools compatibility which are used to rig, skin, add morph targets etc to the character.
Some people alsso use substance and quixel to texture. Other stuff like hairworks etc are vendor- and engine verison- specific.