Otose, born Ayano Terada, grew up in Kabuki District and shared a lifelong childhood friendship with Doromizu Jirocho, frequently intervening to prevent his trouble-making. Both Jirocho and her eventual husband, Terada Tatsugorou, developed romantic feelings for her, though she chose Tatsugorou. During the Amanto war, Tatsugorou died taking a bullet meant for Jirocho, using his final breath to entrust Otose's safety to him. Years later, while visiting her husband's grave, she met Sakata Gintoki and shared food intended as an offering. In return, Gintoki swore a lifelong vow to protect her, repaying his perceived debt to her late husband. This led to her becoming his landlady, permitting him to establish the Yorozuya freelance business above her snack house.

She possesses a stern yet deeply caring nature, running her snack bar while demanding punctual rent payments, especially from the Yorozuya. She employs Catherine, whom she forgave after initial attempts at theft, and the robot Tama, treating both like daughters despite their origins. Her appearance typically features a dark kimono and pinned-up hair, remnants of her past renown as a beauty. Though not a fighter, she commands immense respect in Kabukicho as one of the Four Devas, a title earned through her extensive networks and protective relationships rather than physical prowess.

Her role proved crucial during the Kabukicho Four Devas Arc when Kada, an Amanto casino operator allied with the Harusame pirates, attempted a takeover. Honoring his promise to protect her, Jirocho staged her death by stabbing her at Tatsugorou's grave to remove her from the conflict. This deception ensured her survival while Gintoki and allies confronted Kada's forces. The arc culminated in her declaration that her "faction" consisted not of followers but chosen family: "They call me one of the Four Devas, but I don’t have any members in my faction. My life is all you need. They serve no use at all. They just happen to be my family," referring to Gintoki, Catherine, Tama, and others under her care.

Her relationships define her legacy: she acts as a parental figure to Gintoki, Shinpachi, and Kagura; mentors Catherine and Tama as both employees and daughters; and maintains a complex bond with Jirocho, rooted in shared history and mutual protection. Her snack bar functions as a sanctuary for outcasts, reflecting her unwavering loyalty and willingness to offer second chances. After the Four Devas conflict, her Deva status endures, symbolized by the community she safeguards rather than conventional power structures.

Loosely inspired by the historical Otose, wife of Isuke who founded a Terada Inn sheltering imperial loyalists, the fictional narrative adapts this, altering her spouse's identity and role. Her enduring influence in Kabukicho persists across media, emphasizing her role as a non-combatant pillar of strength whose legacy lies in nurturing and uniting society's discarded.