The out-of-time-ordered (OTO) correlation is a key quantity for quantifying quantum chaoticity and has been recently used in the investigation of quantum holography. Here we use it to study and characterize many-body localization (MBL). We find that a long-time logarithmic variation of the OTO correlation occurs in the MBL phase but is absent in the Anderson localized and ergodic phases. We extract a localization length in the MBL phase, which depends logarithmically on interaction and diverges at a critical interaction. Furthermore, the infinite-time “thermal” fluctuation of the OTO correlation is zero (finite) in the ergodic (MBL) phase and thus can be considered as an order parameter for the ergodic-MBL transition, through which the transition can be identified and characterized. Specifically, the critical point and the related critical exponents can be calculated.