Well, there is not a definite answer for this question as it depends a lot on your project.
I'll assume you mean you are on a first layout when you decide your games "settings". And the game happens on another layout.
To transfer informations from a layout to another you have several tools.
Global variable is one of them. Array and dictionary are another.
Just consider, in the start of layout for your "game" layout to go check the values of either the global variable and/or array/dictionary (depending on what data structure you decided) and set the current layout according to those values.
You have three character to chose from which can be controlled either by player 1 or player 2.
It means that one instance of character will be destroyed to only leave the two instances chosen by the players.
One instance will be assigned to the first player, the other to the other player. (For more informations on how to assign instances to a player or another check out my Bomberman-like tutorial).
Then you apply the X,Y, Z settings.
It is up to you to "program" for yourself what values you will have to pass from the first layout, and how to "interpret" those values on your second layout so that it makes a consistent game.