Drupal 7, out of the box, does not have a WYSIWYG (what you see is what you get) HTML editor installed like WordPress does. What Drupal does have is a plethora modules that can address this need. Most site admins, myself included, like providing an interactive tool for their content maintainers.
In this screencast I muddle through the installation and basic configuration of
After I encoded the video, I played around with the TinyMCE Advanced Image plugin and discovered that it is merely turning on the Image button and the Advanced Image plugin that beefs up the inline image functionality.
Without Advanced Image plugin
Choose both options
Advanced image tools