3D virtual character animation is the core technology of games, animation, and virtual reality. To improve its visual and realistic effects, the research focused on the skeleton skinned mesh algorithm. Firstly, a three-dimensional human body model was established based on motion capture data. Then, the skin vertex weight calculation and bone skin animation design were completed for the human body model. These experiments confirm that the designed weight calculation method has a smooth weight transition and good computational stability. The designed skinned mesh algorithm outperforms its skinned mesh algorithms in accuracy, recall, and area under curve values, with a maximum area under curve value of 0.927. Its smoothness and volume retention rate are both above 90.00%, and there is no obvious collapse phenomenon. Its other objective and subjective evaluation indicators are superior to the existing advanced skinned mesh algorithms processing, and the skin effect is realistic and smooth. Overall, this study contributes to the creation of 3D virtual character animation, enhances the visual realism of virtual creation, and provides key support for the animation performance of virtual characters.