Now Gmail rich Text editor looks perfect. We can insert images into gmail message body.It almost look like wordpress post editor. Previously we can attach photos, but they’re usually displayed at the bottom of the message and not all mail clients show thumbnails.
Inserting Images from Gmail Labs allows you to insert images into a message body. You can upload and insert image files in your computer, or insert images by URLs.
From Gmail Blog – ” “Keep in mind that Gmail doesn’t show URL-based images in messages by default to protect you from spammers, so if you’re sending mail to other Gmail users, they’ll still have to click Display images below or Always display images from … to see images you embed”