In Drupal, by default the TynyMCE editor is allowing to insert the image URL only and not allowing to upload the images from front-end editors.
You need to add and configure some third party modules to achieve this functionality:
Following Drupal modules are required for it:
- WYSIWYG – offers an API for implementing a variety of WYSIWYG editors including FCKeditor 2.6, jWYSIWYG 0.5, markItUp 1.1.5, NicEdit 0.9.0, openWYSIWYG 1.4.7, TinyMCE 3, TinyMCE 2, Whizzywig 55, WYMeditor 0.5, YUI editor 2.7.0
- IMCE – IMCE is an image/file uploader and browser that supports personal directories and quota.
- IMCE Bridge – This module is acts as a bridge between the IMCE module and the Wysiwyg module.