What do the terms direct characterization and indirect characterization mean and how are they used in literature?
Direct characterization implies that you have the precise word to describe a character.
In Jane Austen's Pride and Prejudice , on page 72 "Mr Collins is not a sensible man" This is an example of direct characterization. The reader is a given concrete idea who Mr Collins is.
In Sense and Sensibility in chapter 9, volume I Willoughby is introduced to the reader, no precise description of him is given. Only his behaviour enables the reader to know his personality. The characterization regarding him is indirect.