Change the encoding of a file in Visual Studio Code

Apart from the settings explained in the answer by @DarkNeuron:

"files.encoding": "any encoding"

you can also specify settings for a specific language like so:

"[language id]": {
  "files.encoding": "any encoding"

}

For example, I use this when I need to edit PowerShell files previously created with ISE (which are created in ANSI format):

"[powershell]": {
    "files.encoding": "windows1252"
}

You can get a list of identifiers of well-known languages here.