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We have been playing that it's use can be declared after damage is announced.
IE: "You have been walloped for 40 points of damage!" "Oh, well I want to activate my Absorb Blow charm to absorb some of that".

However re-reading the description,

When activated, it absorbs the first 12 Damage Points inflicted on the character. A character cannot use the charm if he is Surprised or Blindsided.

I am wondering if perhaps it's use needs to be announced after the hit is announced, but before the damage amount is announced.

If it is activated before the damage is announced, and the damage whiffles (or is mostly absorbed by armor), how long does the charm stay active. Days if need be?

The rules don't specify when you activate it, so it's GM's call whether it's before or after damage is rolled. The charm is presumably only active for that one hit, though if it hasn't been drained it can be activated again for subsequent hits. So for example if a Warrior hits you with 5 damage after armour, your Absorb Blow charm is still good for 7 more damage, however if a Thief then hits you from blindside, you can't use it against that attack. Then next turn if the Warrior hits you again, and does 6 damage you've still got one point left. Suppose you moved so that Thief is no longer blindsiding you, and the Thief hits you for 3 damage, your charm absorbs 1 and you take the other 2.

So do most people play that it is activated post after damage is announced? or Before?

I'm pretty sure we always played that the blood charm use was declared before the damage was determined.

Before damage.

Yes, same here. On a successful hit but before damage is checked.

We activate it after damage is rolled, and i use the charm mainly as a wound prevention tool. Though it probably makes more sense to do it before, since the character would be activating it as soon as they strike makes contact.

I say after damage is rolled. I think the charm is constantly straining to keep the character's aura whole, and it actually takes a conscious thought to restrain it.

If that were true Slimcreeper, the charm could be used when Surprised or Blindsided. The fact that it can't suggests the user needs to consciously activate it. That said from a gameplay flow standpoint, it's much easier to just let players decide whether they're going to substract damage from their health pool or their charm, rather than making them declare whether they're using it every single time.

Fair point.