One of the great new features in SharePoint is that we now have two different options for uploading and storing images to the site. We can either upload an image from our computer or from an address.
When you select the From Computer option, the following menu is displayed-
Notice the List Option- This is a dropdown list of all the lists that have been configured as “Asset Lists”. This means that instead of linking to the image on the computer, the image will be uploaded to the selected SharePoint list and then referenced from the list. This is a very awesome new feature! You can configure which lists can be used as Asset Lists through the Advanced Settings for the List.