This one was much needed. We can now insert images within the email messages, which makes more sense at times, rather than expecting the receiver to view the images in attachments.
To attach the images inline with messages in GMail:
1> Login to your Gmail account,
2> Click on Settings, which can be found at the right top corner of the page,
3> Click on labs once the ‘Settings‘ page loads
4> Scroll down and you’ll find ‘Inserting images‘ option, enable and save your options.
Once you have enabled the option, you’ll see a new icon which says insert image, clicking it will pop-up an upload screen to upload images from your computer or from an URL, and you can insert the images inline with the message.
You’ll have option to format the images size to small, medium, large or you can retain the original image. And if you want to remove the image, you can select the image and cut it or use the remove button.