I'm not too familiar with Simulink but the basic concept might help:
A string is nothing else than an array of bytes. If you can find out how to read an array of bytes you have the start. Processing a string in not too different from processing an array of bytes - except for the eventual end-of-line signal ASCIIZ (ASCII Zero - the value 0x00).
Simulink does not handle strings particularly well, however you have a couple of options. If you are running a simulation, you can call MATLABs string processing functions using the coder.extrinsic functionality. Alternatively, if you're running a deployed model then you can use coder.ceval to call the standard C string processing functions.
Example: To read the value of 'Gain' parameter in the Gain block, use the following
command:
>> g_svalue=get_param('simple/Gain','Gain')
The string, 'simple/Gain', identifies the Gain block in the model we called simple (since we saved the model as simple.mdl earlier).
Tip: If you are unsure about the path name for a block, you can first go to the model window and click on the block of interest. Then go back to the Matlab command window and type the command gcb, (which stands for "get current block")