By defult there is no option to Insert Image In Gmail but we can attach images, now here there is one Plugin available in Gmail labs wich will give you option to Insert Images in gmail email, Follow this simple Step
1. Log-in in your Gmail account.
2. Click the Settings tab.
3. Click The Lab tab.
4. Enable the “Inserting Images” plugin.
5. At this point go back to the main Gmail page and click Compose Mail.
6. In the Formatting taskbar, you should notice a new icon labeled Insert Image. Click it to add an image to your email.
7. Done!
