Working with images in the block editor substantially differs from what you may have used to in the WYSIWYG classic editor.  The image block can be added to a page by following the instructions below.

1. Click the Block Inserter icon.
2. Click or drag the Image block to its desired position on the web page.
3. Select Upload, Media Library, or Insert from URL.  Upload and Media Library will let you add or choose media from your library and embed it on your page.  If you select the Insert from URL option to add your image, you will see a button with an upward-facing arrow. If you click on it, the image will be imported into your site’s local Media Library, and the URL on the image block will be automatically updated to point to the new file.

Alternatively, you can type /image in a new paragraph area, press enter, and be presented with the options illustrated in Step 3 above.

Remember - Customizing the image attachment details, such as the Title, Caption, Alt Text, and Description, in the Media Library window can also be helpful for SEO and future navigation of your media library.

For a larger image, right-click and select Open Image in New Tab