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As we can see on http://www.cisco.com/c/en/us/td/docs/wireless/controller/7-0/configuration/guide/c70/c70users.html#wp1048496 in the Step 4, we can generate a password automatically, but it contains only 8 characters.
Is it possible to generate a password of more than 8 characters with the check box?
This is a known issue with WLC and Cisco addressed it with # CSCui56446. It should be addressed with WLC software 8.0 and later.
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No its not possible to generate more than 8 characters with the generate password check box
No, it is not possible to generate a password of more than 8 characters with the check box