Open the section where you'd like to upload the image. Scroll down the page and click on the right hand side action box Drop files to attach, or browse.

Locate the image in your computer files, activate it by clicking and choose open. You may also double click on the image file. 

The image is now uploaded into the section you chose. You may move it wherever you want on the course area by using the small arrow below the image. Note that when you upload the image as a single file, the title of the file will be visible on the course area (as in the image below). 

First you should add a resource (page or label). It is possible to add images into the section descriptions. 

Open the activity or section description for editing. Activities are edited by clicking the pen icon below them and sections are edited by clicking the edit link. 

In the editor view choose the small image icon on the first row of editor tools. 

Find the image on your computer by clicking on Browse repositories. You may also link an image from the internet by pasting the site address into the URL field.

When you choose Browse, the file picker opens up. Choose Upload a file in the left hand side panel and then click on Browse/Choose a file. 

NB! If you wish to use images uploaded by you earlier, you may try searching the images in the left hand side panel (Recent files). The files already uploaded onto this particular course areas are available by clicking on Server files in the left hand side panel. 

Choose the image on your computer files and click Open (or double click on the file).

Now you may change the author information in the file picker. By default Moodle always suggests you as the owner and author of any material you are uploading. Change the author's name, if the owner of the material copyrights is somebody else. 

Select a correct license in the Choose license drop down menu. The default is All rights reserved and it is okay if you are uploading your own material, for example if you are the photographer. However, if you are uploading images taken from for example Pixabay.com (or any other free image stock), you need to change the license (often one of the Creative Commons options). If you do not know the original license, choose Other. You should however, always check the license of the image you are uploading!

Finally click on Upload this file. 

After uploading the image you need to adjust the image settings. If the image was not edited before uploading, usually it is good to downsize it to a web format. 600 pixels is a suitable maximum width for images on Moodle course areas. When you change either one of the image dimensions and click on the white spot, Moodle changes the other figure automatically if you tick the box Auto size.  

If you do not tick Description not necessary, then you need to give a title to the image. You should also consider aligning the image on left, especially if you plan to add text next to the image.

Finally click on Save image and the image appears in the text editor. You may now continue adding some text if you like. If the image needs to be further adjusted, you may do it by clicking on the image in the editor view and then choosing the small image icon. 

To save everything, click Save changes. 

Remember to check the appearance of the image and text on the course area after saving.