Problem in receiving the data from Bluetooth module

I thought that the inData1 array stores character by character.

It does.

So in order to compare each letter of "DONE" I used the for loop.

I don't understand why.

Can I do it with a single "i" value?

Each time you add a character, you need to check whether it is an E, with N in the previous spot, O in the one before that, and and D in the one before that. So, the value for i would be index, and you don't need a for loop.