I can't seem to upload an image from my computer into a text module

I put the cursor where I wanted the image withing the text. Then I clicked the tree icon to insert it. It only seemed to allow my to put in a URL for and image.  I  saw no way to upload one. If I clicked insert, nothing happened except the box to insert it disappeared. Can you only link to images within text instead of uploading them? Or am I doing something wrong?

Try using the icon for adding a link, it looks like a chain.  Then add the link.  If it is to an image the image should be there, but if people click on the image they will go back to the source.  You can get the image link using the right click at the icon.  Be aware I was unable to get a link to an image for an item advertised via a Viglink advertiser who had blocked use of images, so it will only work if the site you are taking the image from did not do so.  I thought advertisers with affiliates allowed images, and many do, but apparently some do not.