Scroll down to the "Cut, copy, and paste" section. Fine the "Insert/paste pictures as:" drop-down box. It's probably set as "In front of text" but it could be something else. It sounds you like you want to use "In line with text".
Scroll down to the "Cut, copy, and paste" section. Fine the "Insert/paste pictures as:" drop-down box. It's probably set as "In front of text" but it could be something else. It sounds you like you want to use "In line with text".