Short answers, pulled from the story.
Character designer Akira Yasuda created Dhalsim while building the roster for Street Fighter II: The World Warrior. Sprite artist Takashi Hayashi used a sketch by Yoshiaki Ohji to finalize the visual design.
Dhalsim appeared as a playable character when Street Fighter II launched in 1991. He ranked at number five on the list of Best Characters of 1991 published by Gamest magazine in Japan during 1992.
Capcom altered his look in 2016 by adding a turban and beard to better align with modern perceptions of Indian culture. They removed his emaciated appearance which marked a significant departure from the original sprite style established in 1991.
British actor Roshan Seth portrayed Dhalsim in the 1994 live action film Street Fighter. The movie depicts him as an Indian scientist whose science originally promoted peace before M. Bison captured him.
Dhalsim fights using a Yoga-based style where he stretches arms, legs, abdomen, and neck to great lengths. He uses many fire-based attacks such as Yoga Fire and Yoga Flame alongside teleportation techniques known as the Yoga Teleport.