How can I return a character array from a function in C?

You’ve got several options:

1) Allocate your array on the heap using malloc(), and return a pointer to it. You’ll also need to keep track of the length yourself:

void give_me_some_chars(char **arr, size_t *arr_len)
{
    /* This function knows the array will be of length 2 */
    char *result = malloc(2);

    if (result) {
        result[0] = 'c';
        result[1] = 'a';
    }

    /* Set output parameters */
    *arr = result;
    *arr_len = 2;
}

void test(void)
{
    char *ar;
    size_t ar_len;
    int i;

    give_me_some_chars(&ar, &ar_len);

    if (ar) {
        printf("Array:\n");
        for (i=0; i<ar_len; i++) {
            printf(" [%d] = %c\n", i, ar[i]);
        }
        free(ar);
    }
}

2) Allocate space for the array on the stack of the caller, and let the called function populate it:

#define ARRAY_LEN(x)    (sizeof(x) / sizeof(x[0]))

/* Returns the number of items populated, or -1 if not enough space */
int give_me_some_chars(char *arr, int arr_len)
{
    if (arr_len < 2)
        return -1;

    arr[0] = 'c';
    arr[1] = 'a';

    return 2;
}

void test(void)
{
    char ar[2];
    int num_items;

    num_items = give_me_some_chars(ar, ARRAY_LEN(ar));

    printf("Array:\n");
    for (i=0; i<num_items; i++) {
        printf(" [%d] = %c\n", i, ar[i]);
    }
}

DO NOT TRY TO DO THIS

char* bad_bad_bad_bad(void)
{
    char result[2];      /* This is allocated on the stack of this function
                            and is no longer valid after this function returns */

    result[0] = 'c';
    result[1] = 'a';

    return result;    /* BAD! */
}

void test(void)
{
    char *arr = bad_bad_bad_bad();

    /* arr is an invalid pointer! */
}