Image: Clicking on select image opens the media manager. In the media manager you can select your image. You can either upload a new image (and automatically resize it), use an existing image of your site or just insert a direct URL (for example: https://example.com/images/test.jpg) of an image. Please make sure you have the permission to use and distribute the image!
Image Alternate Text: Add an alternative text for screen readers and search engines. Strongly recommended.
Link Type: Set an optional link when clicking on the image.
Everything else is configured by the common general properties.
Please make sure you have the permissions and licenses to use the images / media you upload. More information