1. Upload image directly to blogger from your computer .
This is the default option in insert image window. Click “Choose” button and browse for pictures. Always remember to upload low size files. use Jpeg and PNG file formats for your uploads. they load faster and take very low file size. it can help your site to load faster. Select image and click open button. after your image uploaded to picasa albums, it will show on insert image window. now select that uploaded image and click “Add selected” button. now you will see that uploaded image on your blog post.
2. Use Already uploaded images that used in your blog .
After you upload images to your blog they will appear on this page. you Don’t have to re-upload them or find uploaded image link. this section will allow you to see all photos from the beginning to the last uploaded photo. select the image and click “Add selected” button. now you will see that image on your blog post.
When you upload first image to blogger, Google will automatically create a picasa web album for you. when you upload images blogger will save them in your Picasa web album. If you have few blogs, there will be different folders for each blog. you can add images and remove unwanted images from your Picasa account by login in to your Picasa web Album.
You can directly specify an image URL from an external source. if you have any image hosing account, you can use this feature. go to “From a Url” link and enter the direct link to the image. you can get the direct link to a image by Right clicking an image file and selecting “Copy image location” option.