Is it possible that your screen mode toggled from one to another, either Edit Html or Compose modes? That sometimes happens and people who have never selected the OTHER mode can't recognize what they're seeing. If so, the Blogger edit box has the two choices beside each other in the upper right corner (see screen shot below).
|In Compose you can see the photos. You can relocate the image by dragging and dropping it.|
In Edit Html you will see the code for the photos and will have to use Preview (or switch to the Compose mode) to see images. You can move it by using Cut and Paste on the code.
|Is your "Compose Mode" turned on?|
| 1. First go to Dashboard|
2. Go to Manage: Settings.
3. Scroll down the page
4. look for "Show Compose Mode for all your blogs?"
5. Activate it by answering Yes.
Be sure to click on the big orange Save Settings a little bit further toward the bottom of the page.