Is this in Photoshop or Illustrator? The layer hierarchy inside Character Animator follows the structure of the artwork file. (Or have I missed the point?)
(In Photoshop there is an "ungroup layers" command if you right click on the group in the Layers panel.)
I was referring to grouping layers in Character Animator (Puppet > group layers). I noticed that after I grouped layers, there doesn't seem to be a quick way to ungroup (as you would in AI or PSD).
I never realized there was a group layers in CH! You are right, I can see no way to ungroup after grouping. You cannot drag the contents out a level, “reset layers” (right click menu) seems to do nothing, etc. You can submit feature requests (there is an area at the top of the forums).
Here is something you could try (with undo at the ready!). I took a puppet backed by a PSD file. I grouped the two eyes to create a new group. I then edited the PSD file and made a little change (I renamed some other layer elsewhere in the puppet that did not matter) and saved the file changes. When I came back to CH, it reimported the puppet. The left and right eye was still under the group, but there were ALSO added back in their old position (there were two copies!). I then deleted the group (it was strange having the eyes in the group and outside the group at the same time). I have not tested extensively, but seems to still work and tagging etc seems to have been preserved. Might be worth a try!
Sounds like another useful work around... thanks!