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Using MiniMessages
This is the old documentation site for FancyInnovations, which is no longer maintained. The new documentation site can be found at fancyinnovations.com/docs/minecraft-plugins/fancynpcs.
Everywhere, where you can set a text (e.g. npc display_name or hologram lines), you can either use legacy color codes ( &a &6 &l ...) or the MiniMessage format.
MiniMessage is a format that allows you to use a more advanced formatting system. It supports gradients, hover events, click events, and more.
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Links
MiniMessage docs: https://docs.advntr.dev/minimessage/format.html
MiniMessage viewer: https://webui.advntr.dev/