Caring what people think is natural and even useful in small amounts, since humans are social and some concern for others keeps us considerate. The problem is when that concern grows so large that it controls your choices, holds you back from things you want to do, and drains your happiness. The goal is not to stop caring entirely, it is to loosen the grip so it no longer runs your life.
A freeing realisation is that people think about you far less than you fear. Everyone is mostly absorbed in their own lives, worries, and self image, so the harsh, constant judgement you imagine is largely in your own head. Most people will barely remember the small thing you were embarrassed about. Once you truly absorb this, a lot of the fear quietly deflates, because you see that you have been performing for an audience that is barely watching.
It also helps to get clear on your own values and what you want, because when you know what matters to you, other people’s opinions carry less weight. Ask whose opinions actually deserve your attention, usually a few people who genuinely care about you, and let the rest matter less, especially strangers and people who are not living your life or facing your consequences. Practise doing small things you want despite worrying about judgement, and notice that the feared reaction rarely comes. Over time, this builds a steadier confidence that comes from within rather than from approval. You cannot please everyone anyway, and trying to is exhausting, so it is far better to live honestly by your own values.
Example: A student afraid to answer questions in class for fear of looking foolish usually finds, once they start, that classmates barely notice or quickly forget, and the imagined judgement never really arrives.
One practical tip: Remember that people are mostly focused on themselves, not judging you. The critical audience you fear is far smaller and far less attentive than it feels.