This article explains how to add an inline image to a Gmail message so that the image appears in the body of the email. Instructions are for Gmail on the web and the Gmail mobile apps for iOS and Android.
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To add an image or photo inline to an email you're composing in Gmail on the web using a desktop browser:
Select the Expand Window icon (the double-sided arrow) in the upper-right corner of the composition window to make it larger.
Drag the image from the folder on your computer to the desired position in the message.