You can refer to invisible ASCII characters, but the TeXbook doesn't say you can, or should, use them just for fun.
For instance, ^^@ (the null byte) has category code 9, so
Hell^^@ w^^@rld
would result in “Hell wrld”. And indeed you obtain three characters in output and not four.
To the contrary, ^^A (the 1 byte), has category code 8. Here's the table of category codes as set up in plain TeX:

Why the choice for ^^@? Because some operating systems used the null byte in order to fill their fixed length records. There should be no surprise in seeing category code 5 assigned to ^^M. Two cases remain, namely ^^A and ^^K.
The keyboard which Knuth used to work with could produce ↓ and ↑ when pressing CtrlA and CtrlK, respectively, and he liked these visual hints more than ^ and _. A consequence of this is that
$x^^A0$
has the same effect as $x_0$. And, of course, $^^A$ raises an error, because it would be like $_$.
You find the symbols on Knuth's keyboard in the table on page 369. This table also explains why some of these bytes are assigned a mathcode.
For instance CtrlD would produce ∧ on Knuth's screen and indeed we find
\mathcode`\^^D="225E % \land
in plain.tex.
Just for completeness, you can use ^^00 instead of ^^@. This convention is also described in chapter 8 and was added in TeX version 3.
^^Abut neither with^^@not^^B,^^Cor^^D. – cabohah Nov 27 '23 at 08:12$^^A$fails too. – Y. zeng Nov 27 '23 at 08:13$x^^A{y}$. (Note: In plainTeX (not in LaTeX)^^Ahas catcode 8 and therefore is a math subscript.) – cabohah Nov 27 '23 at 08:15plain.texline 17 or ask TeX using\showthe\catcode`\^^A. – cabohah Nov 27 '23 at 08:21plain.tex:\mathcode^^A="3223 % \downarrowor is\downarrowin plain TeX just the same as_`? – daleif Nov 27 '23 at 08:25\mathcodeworks. – cabohah Nov 27 '23 at 08:29