Telugu language is a South Indian language. Historically it was evolved from Sanskrit (Devanagari ). It also uses the features of Dravidan (South Indian ) languages for generating script. Pronunciation in Telugu is almost similar to Devanagari. But when it comes to writing format the script is closer to Kannnada, which is another South Indian language. Almost all the letters are formed from a circle. Letter formation is a complex phenomenon. It can be a Vowel, Consonant or a complex letter. There are 18 Vowels and 38 Consonants. Even a consonant is a combination of a base consonant and a vowel. The complex letters are formed by combining more than one base consonant with a vowel. These combinations generate new glyphs which unique of its nature. This paper deals with the general construction of letters in Telugu and the characteristics of the corresponding glyph. It also discuss the overview of encoding and priinciples on which it is based