Play with the sliders until you have characters, and backgrounds you like then press Start. Then you watch.
I was trying to make ai fight each other, so this is what I got. Characters: A shadow, flying hippo, Gobo, Tera, Pico, "glitched" cat, Giga, Nano, Dog, Scratch Cat as a dog, Scratch Cat, Scratch in space, a butterfly, ScratchCat.exe, Scratch Jr, Tic, Toc, Tac, a yeti, and a squirrel.