Currently new to the 2D side of Unity, was wondering if it is possible in anyway to take sprites for body, leg, head, etc and place them together and animate through Unity? So no 3D models at all, just 2D images?
Yes, it’s possible.
Have a look at the Player Bean from the 2D Demo Project that came out with Unity 4.3. The video 2D Game Development Walkthrough will give you an overview how the demo was built. The Bean’s animations are being explained starting at around 03:46.