First you have to allow Enable Image Insertion in Gmail
To turn on Gmail's Insert Image button:
- Follow the Settings link in Gmail.
- Go to the Labs tab.
- Make sure Enable is selected for Inserting images.
- Click Save Changes.
To add Images on email:
1. Position the text cursor where you want the image to appear.
2. Click the Insert Image button in the message's formatting toolbar.
3. To upload an image from your computer:
- Make sure My Computer is selected.
- Click Choose File and open the desired graphic.
- You can click Choose File again to add another image while others are already uploading in the background.
- Make sure the desired image is highlighted.
4. To use an image located on the web:
- Make sure Web address (URL) is selected.
- Enter the image's URL under Image URL.
5. Click Add Image.
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