This means you don’t have to open each attachment by hand you just scroll down below the message, and there they are. When they receive an email with images as attachments, they automatically display the attachments after the message. If your sender chose HTML format (the default these days), it’s their choice as to whether to display the images in-line or include them as attachments. Plain text email, on the other hand, only allows for images as attachments. HTML email also allow images to be included as regular attachments, without any relationship to the message body. In either case, the image appears within the body of the message. The image can be included within the email as a hidden attachment, or the image can be fetched from a website. HTML, or Rich Text formatted email, allow images to be embedded within the message body.
Email can be formatted to display images in-line (in the body of the message) or as attachments.
Part of what determines how the email is displayed to you is the format the sender used when they wrote their email. Email formats (rich or plain), as well as choices made by the sender (to attach or place in-line), and security settings on your machine protecting you from spammers all impact where, how, or even if pictures in email are displayed.