The character that wears a red cloak in the fairy tale is known as Little Red Riding Hood. This classic tale revolves around a young girl who encounters a wolf while on her way to visit her grandmother. The red cloak is a significant symbol in the story, representing innocence and the transition from childhood to adulthood as she learns about the dangers of the world. The tale serves as a cautionary story, emphasizing themes of bravery, deception, and the importance of listening to parental advice.